There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don’t cover. Because of Carl Icahn and other elite funds’ exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze Bazaarvoice Inc (NASDAQ:BV).
Is Bazaarvoice Inc (NASDAQ:BV) undervalued? Hedge funds are turning bullish. The number of bullish hedge fund positions moved up by 7 in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Covenant Transportation Group, Inc. (NASDAQ:CVTI), TG Therapeutics Inc (NASDAQ:TGTX), and Trevena Inc (NASDAQ:TRVN) to gather more data points.
Follow Bazaarvoice Inc (NASDAQ:BV)
Follow Bazaarvoice Inc (NASDAQ:BV)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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What have hedge funds been doing with Bazaarvoice Inc (NASDAQ:BV)?
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 41% jump from one quarter earlier, pushing hedge fund ownership of the stock to a yearly high. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, RGM Capital, managed by Robert G. Moses, holds the largest position in Bazaarvoice Inc (NASDAQ:BV). RGM Capital has a $41.8 million position in the stock, comprising 4.7% of its 13F portfolio. The second most bullish fund manager is Renaissance Technologies, managed by Jim Simons, which holds a $20 million position. Remaining professional money managers with similar optimism consist of Anand Parekh’s Alyeska Investment Group, Amish Mehta’s SQN Investors and Spencer M. Waxman’s Shannon River Fund Management.
Now, key money managers have been driving this bullishness. Shannon River Fund Management created the most valuable position in Bazaarvoice Inc (NASDAQ:BV). Shannon River Fund Management had $11.8 million invested in the company at the end of the quarter. Josh Goldberg’s G2 Investment Partners Management also made a $3.7 million investment in the stock during the quarter. The other funds with new positions in the stock are George McCabe’s Portolan Capital Management, Josh Goldberg’s G2 Investment Partners Management, and Glenn Russell Dubin’s Highbridge Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to Bazaarvoice Inc (NASDAQ:BV). We will take a look at Covenant Transportation Group, Inc. (NASDAQ:CVTI), TG Therapeutics Inc (NASDAQ:TGTX), Trevena Inc (NASDAQ:TRVN), and Vivint Solar Inc (NYSE:VSLR). This group of stocks’ market caps are similar to BV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CVTI | 8 | 18452 | 3 |
| TGTX | 5 | 96973 | -4 |
| TRVN | 10 | 32645 | 0 |
| VSLR | 4 | 11539 | -2 |
As you can see these stocks had an average of 6.75 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $146 million in BV’s case. Trevena Inc (NASDAQ:TRVN) is the most popular stock in this table. On the other hand Vivint Solar Inc (NYSE:VSLR) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Bazaarvoice Inc (NASDAQ:BV) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and growing fonder by the quarter, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
