Hedge Funds Have Never Been This Bullish On Everbridge, Inc. (EVBG)

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the fourth quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Everbridge, Inc. (NASDAQ:EVBG) based on that data.

Everbridge, Inc. (NASDAQ:EVBG) was in 49 hedge funds’ portfolios at the end of March. The all time high for this statistic was 43. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. EVBG has seen an increase in activity from the world’s largest hedge funds of late. There were 36 hedge funds in our database with EVBG positions at the end of the fourth quarter. Our calculations also showed that EVBG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was 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). So you can still find a lot of gems by following hedge funds’ moves today.

Tim Woolley of Polar Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation, which is why we are checking out this inflation play. We go through lists like 10 best gold stocks to buy to identify promising stocks. 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. Keeping this in mind let’s analyze the fresh hedge fund action regarding Everbridge, Inc. (NASDAQ:EVBG).

Do Hedge Funds Think EVBG Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 49 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 36% from the fourth quarter of 2020. By comparison, 31 hedge funds held shares or bullish call options in EVBG a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

Among these funds, Select Equity Group held the most valuable stake in Everbridge, Inc. (NASDAQ:EVBG), which was worth $446.3 million at the end of the fourth quarter. On the second spot was Sylebra Capital Management which amassed $229.1 million worth of shares. Polar Capital, Motley Fool Asset Management, and Millennium Management 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 Sylebra Capital Management allocated the biggest weight to Everbridge, Inc. (NASDAQ:EVBG), around 5.92% of its 13F portfolio. Cota Capital is also relatively very bullish on the stock, setting aside 5.1 percent of its 13F equity portfolio to EVBG.

As one would reasonably expect, specific money managers have jumped into Everbridge, Inc. (NASDAQ:EVBG) headfirst. Millennium Management, managed by Israel Englander, assembled the most valuable position in Everbridge, Inc. (NASDAQ:EVBG). Millennium Management had $25.5 million invested in the company at the end of the quarter. Richard Scott Greeder’s Broad Bay Capital also initiated a $24.2 million position during the quarter. The other funds with new positions in the stock are Eduardo Costa’s Calixto Global Investors, Dmitry Balyasny’s Balyasny Asset Management, and Warren Lammert’s Granite Point Capital.

Let’s also examine hedge fund activity in other stocks similar to Everbridge, Inc. (NASDAQ:EVBG). These stocks are Navistar International Corp (NYSE:NAV), Workiva Inc (NYSE:WK), SAGE Therapeutics Inc (NASDAQ:SAGE), 21Vianet Group Inc (NASDAQ:VNET), ChampionX Corporation (NASDAQ:CHX), The Hain Celestial Group, Inc. (NASDAQ:HAIN), and Selective Insurance Group, Inc. (NASDAQ:SIGI). This group of stocks’ market valuations match EVBG’s market valuation.

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As you can see these stocks had an average of 23.4 hedge funds with bullish positions and the average amount invested in these stocks was $726 million. That figure was $1083 million in EVBG’s case. 21Vianet Group Inc (NASDAQ:VNET) is the most popular stock in this table. On the other hand Selective Insurance Group, Inc. (NASDAQ:SIGI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Everbridge, Inc. (NASDAQ:EVBG) is more popular among hedge funds. Our overall hedge fund sentiment score for EVBG is 90. 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 17.4% in 2021 through June 18th and still managed to beat the market by 6.1 percentage points. Hedge funds were also right about betting on EVBG, though not to the same extent, as the stock returned 5.9% since the end of March (through June 18th) and outperformed the market as well.

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Disclosure: None. This article was originally published at Insider Monkey.