Is Pendrell Corporation – Class A (NASDAQ:PCO) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Is Pendrell Corporation – Class A (NASDAQ:PCO) a buy right now? The best stock pickers are betting on the stock. The number of long hedge fund bets rose by 1 in recent months. At the end of this article we will also compare PCO to other stocks including Endocyte, Inc. (NASDAQ:ECYT), Genocea Biosciences Inc (NASDAQ:GNCA), and Limelight Networks, Inc. (NASDAQ:LLNW) to get a better sense of its popularity.
Follow Pendrell Corp (NASDAQ:PCOA)
Follow Pendrell Corp (NASDAQ:PCOA)
Keeping this in mind, let’s take a glance at the recent action encompassing Pendrell Corporation – Class A (NASDAQ:PCO).
Hedge fund activity in Pendrell Corporation – Class A (NASDAQ:PCO)
At the end of the third quarter, a total of 8 of the hedge funds tracked by Insider Monkey were long this stock, a change of 14% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Highland Capital Management, managed by James Dondero, holds the most valuable position in Pendrell Corporation – Class A (NASDAQ:PCO). Highland Capital Management has a $32.8 million position in the stock, comprising 1% of its 13F portfolio. The second most bullish fund manager is Thomas Steyer of Farallon Capital, with a $5.6 million position; 0.1% of its 13F portfolio is allocated to the stock. Other peers that are bullish contain Israel Englander’s Millennium Management, D E Shaw and Jim Simons’s Renaissance Technologies.
With a general bullishness amongst the heavyweights, key money managers have jumped into Pendrell Corporation – Class A (NASDAQ:PCO) headfirst. Millennium Management, managed by Israel Englander, assembled the most outsized position in Pendrell Corporation – Class A (NASDAQ:PCO). Millennium Management had $1.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a small investment in the stock during the quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Pendrell Corporation – Class A (NASDAQ:PCO) but similarly valued. These stocks are Endocyte, Inc. (NASDAQ:ECYT), Genocea Biosciences Inc (NASDAQ:GNCA), Limelight Networks, Inc. (NASDAQ:LLNW), and The Phoenix Companies, Inc. (NYSE:PNX). This group of stocks’ market valuations are similar to PCO’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ECYT | 10 | 15107 | 3 |
| GNCA | 14 | 34354 | 4 |
| LLNW | 12 | 12206 | 1 |
| PNX | 5 | 18416 | 0 |
As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $60 million in PCO’s case. Genocea Biosciences Inc (NASDAQ:GNCA) is the most popular stock in this table. On the other hand The Phoenix Companies, Inc. (NYSE:PNX) is the least popular one with only 5 bullish hedge fund positions. Pendrell Corporation – Class A (NASDAQ:PCO) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GNCA might be a better candidate to consider a long position.
