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 second 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 5 years and analyze what the smart money thinks of Fiverr International Ltd. (NYSE:FVRR) based on that data and determine whether they were really smart about the stock.
Fiverr International Ltd. (NYSE:FVRR) has seen an increase in hedge fund sentiment lately. Fiverr International Ltd. (NYSE:FVRR) was in 21 hedge funds’ portfolios at the end of June. The all time high for this statistics is 13. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that FVRR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 101% since March 2017 and outperformed the S&P 500 ETFs by more than 56 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Paul Tudor Jones of Tudor Investment Corp
At Insider Monkey we scour multiple sources to uncover 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 and boost precious metals prices. So, we are checking out this lithium company which could also benefit from the electric car adoption. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website to get excerpts of these letters in your inbox. Keeping this in mind let’s check out the latest hedge fund action encompassing Fiverr International Ltd. (NYSE:FVRR).
How have hedgies been trading Fiverr International Ltd. (NYSE:FVRR)?
Heading into the third quarter of 2020, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 62% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FVRR over the last 20 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
More specifically, Brightlight Capital was the largest shareholder of Fiverr International Ltd. (NYSE:FVRR), with a stake worth $31.6 million reported as of the end of September. Trailing Brightlight Capital was D E Shaw, which amassed a stake valued at $29.9 million. Renaissance Technologies, Millennium Management, and Driehaus 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 16.1% of its 13F portfolio. Noked Capital is also relatively very bullish on the stock, earmarking 9.21 percent of its 13F equity portfolio to FVRR.
Consequently, some big names were breaking ground themselves. Noked Capital, managed by Roy Vermus and Shlomi Bracha, assembled the most valuable position in Fiverr International Ltd. (NYSE:FVRR). Noked Capital had $12.9 million invested in the company at the end of the quarter. Kevin Mok’s Hidden Lake Asset Management also made a $8.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Greg Eisner’s Engineers Gate Manager, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s check out hedge fund activity in other stocks similar to Fiverr International Ltd. (NYSE:FVRR). We will take a look at Sunrun Inc (NASDAQ:RUN), DCP Midstream LP (NYSE:DCP), SINA Corp (NASDAQ:SINA), Umpqua Holdings Corp (NASDAQ:UMPQ), iRobot Corporation (NASDAQ:IRBT), LivaNova PLC (NASDAQ:LIVN), and Capri Holdings Limited (NYSE:CPRI). All of these stocks’ market caps are similar to FVRR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RUN | 21 | 682771 | -3 |
| DCP | 2 | 3369 | -2 |
| SINA | 16 | 103843 | 3 |
| UMPQ | 24 | 151735 | 1 |
| IRBT | 22 | 126930 | 3 |
| LIVN | 29 | 368844 | 5 |
| CPRI | 28 | 446164 | -1 |
| Average | 20.3 | 269094 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.3 hedge funds with bullish positions and the average amount invested in these stocks was $269 million. That figure was $185 million in FVRR’s case. LivaNova PLC (NASDAQ:LIVN) is the most popular stock in this table. On the other hand DCP Midstream LP (NYSE:DCP) is the least popular one with only 2 bullish hedge fund positions. Fiverr International Ltd. (NYSE:FVRR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for FVRR is 75.2. 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 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 24.8% in 2020 through the end of third quarter and still beat the market by 19.3 percentage points. Hedge funds were also right about betting on FVRR as the stock returned 88.3% during Q3 and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
