The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Globant SA (NYSE:GLOB).
Globant SA (NYSE:GLOB) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. There were 8 hedge funds in our database with GLOB positions at the end of the previous quarter. At the end of this article we will also compare GLOB to other stocks including Nationstar Mortgage Holdings Inc (NYSE:NSM), BlackRock Credit All Inc Trust IV (NYSE:BTZ), and DineEquity Inc (NYSE:DIN) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, we’re going to view the fresh action surrounding Globant SA (NYSE:GLOB).
Hedge fund activity in Globant SA (NYSE:GLOB)
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 25% from one quarter earlier. By comparison, 7 hedge funds held shares or bullish call options in GLOB heading into this year. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Brian Ashford-Russell and Tim Woolley of Polar Capital holds the largest position in Globant SA (NYSE:GLOB). According to regulatory filings, the fund has a $20.8 million position in the stock. The second largest stake is held by Matthew A. Weatherbie of Weatherbie Capital, which oversees a $20 million position; 2.5% of its 13F portfolio is allocated to the stock. Some other professional money managers that are bullish consist of Richard Driehaus’ Driehaus Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Paul Marshall and Ian Wace’s Marshall Wace LLP. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As one would reasonably expect, some big names were leading the bulls’ herd. John Overdeck and David Siegel’s Two Sigma Advisors created the biggest position in Globant SA (NYSE:GLOB). According to its latest 13F filing, the fund had $3 million invested in the company at the end of the quarter. Marshall Wace LLP also initiated a $0.8 million position during the quarter. The only other fund with a brand new GLOB position is Paul Tudor Jones’ Tudor Investment Corp.
Let’s check out hedge fund activity in other stocks similar to Globant SA (NYSE:GLOB). We will take a look at Nationstar Mortgage Holdings Inc (NYSE:NSM), BlackRock Credit All Inc Trust IV (NYSE:BTZ), DineEquity Inc (NYSE:DIN), and Mantech International Corp (NASDAQ:MANT). This group of stocks’ market values resemble GLOB’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NSM | 13 | 212102 | -2 |
| BTZ | 3 | 1574 | 1 |
| DIN | 16 | 106871 | 0 |
| MANT | 11 | 11708 | -1 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $55 million in GLOB’s case. DineEquity Inc (NYSE:DIN) is the most popular stock in this table. On the other hand BlackRock Credit All Inc Trust IV (NYSE:BTZ) is the least popular one with only 3 bullish hedge fund positions. Globant SA (NYSE:GLOB) 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 DIN might be a better candidate to consider taking a long position in.
Disclosure: None
