Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Higher One Holdings, Inc (NYSE:ONE)?
Higher One Holdings, Inc (NYSE:ONE) investors should be aware of a decrease in support from the world’s most elite money managers recently. 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 Carbylan Therapeutics Inc (NASDAQ:CBYL), BIND Therapeutics Inc (NASDAQ:BIND), and Intermolecular Inc (NASDAQ:IMI) to gather more data points.
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According to most investors, hedge funds are viewed as underperforming, old financial vehicles of the past. While there are more than 8000 funds with their doors open at present, Our researchers choose to focus on the crème de la crème of this group, approximately 700 funds. These investment experts watch over the lion’s share of all hedge funds’ total asset base, and by monitoring their matchless equity investments, Insider Monkey has unsheathed numerous investment strategies that have historically surpassed the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points annually for a decade in their back tests.
With all of this in mind, let’s take a glance at the new action encompassing Higher One Holdings, Inc (NYSE:ONE).
What does the smart money think about Higher One Holdings, Inc (NYSE:ONE)?
Heading into Q4, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Deccan Value Advisors, managed by Vinit Bodas, holds the biggest position in Higher One Holdings, Inc (NYSE:ONE). Deccan Value Advisors has a $8.8 million position in the stock, comprising 1.5% of its 13F portfolio. Coming in second is Ancient Art (Teton Capital), led by Quincy Lee, holding a $3.3 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass D. E. Shaw’s D E Shaw, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Israel Englander’s Millennium Management.
Due to the fact that Higher One Holdings, Inc (NYSE:ONE) has witnessed falling interest from the smart money, it’s easy to see that there is a sect of hedgies that slashed their full holdings by the end of the third quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management dropped the largest stake of the 700 funds watched by Insider Monkey, comprising an estimated $0.6 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund sold off about $0.3 million worth. These moves are important to note, as total hedge fund interest was cut by 2 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Higher One Holdings, Inc (NYSE:ONE) but similarly valued. These stocks are Carbylan Therapeutics Inc (NASDAQ:CBYL), BIND Therapeutics Inc (NASDAQ:BIND), Intermolecular Inc (NASDAQ:IMI), and Gastar Exploration Limited (USA) (NYSEMKT:GST). This group of stocks’ market valuations resemble ONE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CBYL | 5 | 5644 | -1 |
| BIND | 4 | 1938 | -1 |
| IMI | 6 | 25271 | 1 |
| GST | 6 | 2738 | -3 |
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $16 million in ONE’s case. Intermolecular Inc (NASDAQ:IMI) is the most popular stock in this table with six funds reporting long positions. On the other hand BIND Therapeutics Inc (NASDAQ:BIND) is the least popular one. Compared to these stocks Higher One Holdings, Inc (NYSE:ONE) 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.
