Is Silver Spring Networks Inc (NYSE:SSNI) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Silver Spring Networks Inc (NYSE:SSNI) has experienced an increase in hedge fund sentiment lately. Silver Spring Networks Inc (NYSE:SSNI) was in 16 hedge funds’ portfolios at the end of September. There were 14 hedge funds in our database with Silver Spring Networks Inc (NYSE:SSNI) positions at the end of the previous quarter. At the end of this article, we will also compare Silver Spring Networks Inc (NYSE:SSNI) to other stocks, including Zhaopin Ltd (ADR) (NYSE:ZPIN), CorVel Corporation (NASDAQ:CRVL), and Interactive Intelligence Group Inc (NASDAQ:ININ) to get a better sense of its popularity.
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In the 21st century investor’s toolkit, there are dozens of metrics investors have at their disposal to analyze their stock investments. A pair of the best metrics are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best investment managers can outclass the S&P 500 by a solid amount (see the details here).
Keeping this in mind, let’s take a look at the key action encompassing Silver Spring Networks Inc (NYSE:SSNI).
How are hedge funds trading Silver Spring Networks Inc (NYSE:SSNI)?
Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 14% from the second quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Electron Capital Partners, managed by Jos Shaver, holds the biggest position in Silver Spring Networks Inc (NYSE:SSNI). Electron Capital Partners has a $2.2 million position in the stock, comprising 1.3% of its 13F portfolio. Coming in second is Renaissance Technologies, with a $1.9 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other professional money managers that hold long positions consist of Ken Griffin’s Citadel Investment Group, Thomas E. Claugus’s GMT Capital, and Richard Driehaus’ Driehaus Capital.
With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Ardsley Partners, managed by Philip Hempleman, assembled the most valuable position in Silver Spring Networks Inc (NYSE:SSNI). Ardsley Partners had $1 million invested in the company at the end of the quarter. Scott Fine and Peter Richards’s Empire Capital Management also made a $0.6 million investment in the stock during the quarter. The following funds were also among the new SSNI investors: Neil Chriss’s Hutchin Hill Capital, Chao Ku’s Nine Chapters Capital Management, and Cliff Asness’ AQR Capital Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Silver Spring Networks Inc (NYSE:SSNI) but similarly valued. We will take a look at Zhaopin Ltd (ADR) (NYSE:ZPIN), CorVel Corporation (NASDAQ:CRVL), Interactive Intelligence Group Inc (NASDAQ:ININ), and Sandy Spring Bancorp Inc. (NASDAQ:SASR). This group of stocks’ market caps is closest to Silver Spring Networks Inc (NYSE:SSNI)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ZPIN | 6 | 4894 | -5 |
| CRVL | 10 | 52208 | -1 |
| ININ | 9 | 122242 | -1 |
| SASR | 4 | 52909 | 0 |
As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $15 million in Silver Spring Networks Inc (NYSE:SSNI)’s case. CorVel Corporation (NASDAQ:CRVL) is the most popular stock in this table. On the other hand, Sandy Spring Bancorp Inc. (NASDAQ:SASR) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Silver Spring Networks Inc (NYSE:SSNI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
