Insider Monkey finished processing more than 738 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2019. What do these smart investors think about Servicesource International Inc (NASDAQ:SREV)?
Is Servicesource International Inc (NASDAQ:SREV) the right pick for your portfolio? Investors who are in the know are turning less bullish. The number of bullish hedge fund positions retreated by 2 in recent months. Our calculations also showed that srev isn’t among the 30 most popular stocks among hedge funds.
Today there are many formulas shareholders have at their disposal to value their holdings. Two of the most useful formulas are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the top hedge fund managers can beat their index-focused peers by a very impressive amount (see the details here).
Let’s take a gander at the fresh hedge fund action regarding Servicesource International Inc (NASDAQ:SREV).
Hedge fund activity in Servicesource International Inc (NASDAQ:SREV)
Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SREV over the last 15 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
Among these funds, Cannell Capital held the most valuable stake in Servicesource International Inc (NASDAQ:SREV), which was worth $5.8 million at the end of the first quarter. On the second spot was Headlands Capital which amassed $5.1 million worth of shares. Moreover, Renaissance Technologies, Prescott Group Capital Management, and D E Shaw were also bullish on Servicesource International Inc (NASDAQ:SREV), allocating a large percentage of their portfolios to this stock.
Since Servicesource International Inc (NASDAQ:SREV) has witnessed declining sentiment from the smart money, it’s easy to see that there was a specific group of hedge funds who sold off their positions entirely by the end of the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group said goodbye to the biggest position of the “upper crust” of funds followed by Insider Monkey, worth an estimated $0.1 million in stock. Cliff Asness’s fund, AQR Capital Management, also cut its stock, about $0 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks similar to Servicesource International Inc (NASDAQ:SREV). We will take a look at Universal Technical Institute, Inc. (NYSE:UTI), Verona Pharma plc (NASDAQ:VRNA), Miragen Therapeutics, Inc. (NASDAQ:MGEN), and vTv Therapeutics Inc (NASDAQ:VTVT). This group of stocks’ market values are closest to SREV’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UTI | 8 | 24069 | 1 |
| VRNA | 5 | 18626 | 1 |
| MGEN | 5 | 6086 | -2 |
| VTVT | 3 | 555 | 1 |
| Average | 5.25 | 12334 | 0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $22 million in SREV’s case. Universal Technical Institute, Inc. (NYSE:UTI) is the most popular stock in this table. On the other hand vTv Therapeutics Inc (NASDAQ:VTVT) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Servicesource International Inc (NASDAQ:SREV) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on SREV as the stock returned 6.5% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.
