A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Bandwidth Inc. (NASDAQ:BAND).
Bandwidth Inc. (NASDAQ:BAND) was in 26 hedge funds’ portfolios at the end of September. The all time high for this statistic is 33. BAND investors should be aware of an increase in support from the world’s most elite money managers of late. There were 21 hedge funds in our database with BAND positions at the end of the second quarter. Our calculations also showed that BAND isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s take a gander at the latest hedge fund action encompassing Bandwidth Inc. (NASDAQ:BAND).
Chuck Royce of Royce & Associates
Do Hedge Funds Think BAND Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of 24% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards BAND over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Steve Cohen’s Point72 Asset Management has the largest position in Bandwidth Inc. (NASDAQ:BAND), worth close to $53.8 million, corresponding to 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, led by Ken Griffin, holding a $47.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions encompass Bijan Modanlou, Joseph Bou-Saba, and Jayaveera Kodali’s Alta Park Capital, Chuck Royce’s Royce & Associates and Renaissance Technologies. In terms of the portfolio weights assigned to each position Provenire Capital allocated the biggest weight to Bandwidth Inc. (NASDAQ:BAND), around 5.29% of its 13F portfolio. Boardman Bay Capital Management is also relatively very bullish on the stock, dishing out 4.36 percent of its 13F equity portfolio to BAND.
As industrywide interest jumped, some big names have jumped into Bandwidth Inc. (NASDAQ:BAND) headfirst. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the biggest position in Bandwidth Inc. (NASDAQ:BAND). Marshall Wace LLP had $12.5 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also made a $2.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Gelband’s ExodusPoint Capital, Paul Tudor Jones’s Tudor Investment Corp, and Jinghua Yan’s TwinBeech Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Bandwidth Inc. (NASDAQ:BAND) but similarly valued. These stocks are First Merchants Corporation (NASDAQ:FRME), American Assets Trust, Inc (NYSE:AAT), StepStone Group Inc. (NASDAQ:STEP), TowneBank (NASDAQ:TOWN), Medifast, Inc. (NYSE:MED), Hostess Brands, Inc. (NASDAQ:TWNK), and Fluor Corporation (NYSE:FLR). This group of stocks’ market valuations are similar to BAND’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FRME | 15 | 131708 | 3 |
| AAT | 8 | 38296 | -2 |
| STEP | 13 | 60373 | 1 |
| TOWN | 12 | 45868 | 2 |
| MED | 20 | 251410 | -3 |
| TWNK | 28 | 453650 | -4 |
| FLR | 18 | 84204 | -4 |
| Average | 16.3 | 152216 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.3 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $285 million in BAND’s case. Hostess Brands, Inc. (NASDAQ:TWNK) is the most popular stock in this table. On the other hand American Assets Trust, Inc (NYSE:AAT) is the least popular one with only 8 bullish hedge fund positions. Bandwidth Inc. (NASDAQ:BAND) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BAND is 78.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately BAND wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BAND were disappointed as the stock returned -21.4% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Bandwidth Inc. (NASDAQ:BAND)
Follow Bandwidth Inc. (NASDAQ:BAND)
Suggested Articles:
Disclosure: None. This article was originally published at Insider Monkey.
