The 700+ hedge funds and money managers tracked by Insider Monkey have compiled and submitted their 13F filings for the third quarter, which unveiled their equity positions as of September 30. We went through these filings and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, and this article is set to reveal the latest smart money sentiment towards BroadSoft Inc (NASDAQ:BSFT).
BroadSoft Inc (NASDAQ:BSFT) has experienced a decrease in activity from the world’s largest hedge funds of late. BroadSoft Inc was in 14 hedge funds’ portfolios at the end of September. There were 16 hedge funds in our database with BroadSoft Inc holdings at the end of the previous quarter. 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 Qiwi PLC (NASDAQ:QIWI), United Fire Group, Inc. (NASDAQ:UFCS), and CONN’S, Inc. (NASDAQ:CONN) to gather more data points.
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At the moment there are numerous formulas market participants put to use to evaluate publicly traded companies. Two of the most useful formulas are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the best picks of the best investment managers can outclass the broader indices by a solid margin (see the details here).
Keeping this in mind, let’s view the key action regarding BroadSoft Inc (NASDAQ:BSFT).
How are hedge funds trading BroadSoft Inc (NASDAQ:BSFT)?
At the end of the third quarter, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a 13% slide from the second quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully (or had already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Sagard Capital Partners Management Corp, managed by Dan Friedberg, holds the number one position in BroadSoft Inc (NASDAQ:BSFT). Sagard Capital Partners Management Corp has a $40.4 million position in the stock, comprising 14.1% of its 13F portfolio. On Sagard Capital Partners Management Corp’s heels is Lee Munder Capital Group, led by Lee Munder, holding a $23 million position; 0.5% of its 13F portfolio is allocated to the company. Some other professional money managers that hold long positions encompass Anand Parekh’s Alyeska Investment Group, Ken Griffin’s Citadel Investment Group, and Renaissance Technologies.
Seeing as BroadSoft Inc (NASDAQ:BSFT) has witnessed bearish sentiment from hedge fund managers, we can see that there were a few fund managers who sold off their full holdings in the third quarter. Intriguingly, Soros Fund Management sold off the biggest position of all the hedgies tracked by Insider Monkey, valued at about $23.6 million in stock. Michael A. Price and Amos Meron’s fund, Empyrean Capital Partners, also cut its stock, about $5.7 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 2 funds in the third quarter.
Let’s go over hedge fund activity in other stocks similar to BroadSoft Inc (NASDAQ:BSFT). These stocks are Qiwi PLC (NASDAQ:QIWI), United Fire Group, Inc. (NASDAQ:UFCS), CONN’S, Inc. (NASDAQ:CONN), and Heron Therapeutics Inc (NASDAQ:HRTX). This group of stocks’ market valuations match BroadSoft Inc’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| QIWI | 8 | 81567 | -2 |
| UFCS | 8 | 19048 | 1 |
| CONN | 12 | 455717 | -12 |
| HRTX | 21 | 478679 | 1 |
As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $259 million. That figure was $104 million in BroadSoft Inc’s case. Heron Therapeutics Inc (NASDAQ:HRTX) is the most popular stock in this table. On the other hand Qiwi PLC (NASDAQ:QIWI) is the least popular one with only 8 bullish hedge fund positions. BroadSoft Inc (NASDAQ:BSFT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Heron Therapeutics Inc might be a better candidate to consider a long position.
