The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Fiverr International Ltd. (NYSE:FVRR) based on those filings.
Fiverr International Ltd. (NYSE:FVRR) investors should pay attention to a decrease in enthusiasm from smart money in recent months. Fiverr International Ltd. (NYSE:FVRR) was in 27 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 30. Our calculations also showed that FVRR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.
Israel Englander of Millennium Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s review the key hedge fund action surrounding Fiverr International Ltd. (NYSE:FVRR).
Do Hedge Funds Think FVRR Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the previous quarter. By comparison, 13 hedge funds held shares or bullish call options in FVRR a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, SRS Investment Management held the most valuable stake in Fiverr International Ltd. (NYSE:FVRR), which was worth $185.5 million at the end of the fourth quarter. On the second spot was Renaissance Technologies which amassed $41.7 million worth of shares. Citadel Investment Group, Millennium Management, and Brightlight Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Brightlight Capital allocated the biggest weight to Fiverr International Ltd. (NYSE:FVRR), around 13.98% of its 13F portfolio. Kent Lake Capital is also relatively very bullish on the stock, dishing out 4.42 percent of its 13F equity portfolio to FVRR.
Since Fiverr International Ltd. (NYSE:FVRR) has faced a decline in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedgies that elected to cut their positions entirely heading into Q2. Interestingly, Jack Woodruff’s Candlestick Capital Management sold off the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $28.3 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also cut its stock, about $6.7 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds heading into Q2.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Fiverr International Ltd. (NYSE:FVRR) but similarly valued. We will take a look at National Retail Properties, Inc. (NYSE:NNN), Anaplan, Inc. (NYSE:PLAN), Fate Therapeutics Inc (NASDAQ:FATE), Fastly, Inc. (NYSE:FSLY), Performance Food Group Company (NYSE:PFGC), Capri Holdings Limited (NYSE:CPRI), and AutoNation, Inc. (NYSE:AN). All of these stocks’ market caps resemble FVRR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NNN | 22 | 289672 | 8 |
| PLAN | 55 | 2367556 | -8 |
| FATE | 39 | 2634993 | 5 |
| FSLY | 26 | 1323528 | -6 |
| PFGC | 18 | 330563 | -4 |
| CPRI | 47 | 909126 | 5 |
| AN | 24 | 585168 | 1 |
| Average | 33 | 1205801 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1206 million. That figure was $399 million in FVRR’s case. Anaplan, Inc. (NYSE:PLAN) is the most popular stock in this table. On the other hand Performance Food Group Company (NYSE:PFGC) is the least popular one with only 18 bullish hedge fund positions. Fiverr International Ltd. (NYSE:FVRR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for FVRR is 42.2. 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. 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 24% in 2021 through July 9th and beat the market by 6.7 percentage points. A small number of hedge funds were also right about betting on FVRR, though not to the same extent, as the stock returned 10.9% since the end of Q1 (through July 9th) and outperformed the market.
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Disclosure: None. This article was originally published at Insider Monkey.
