A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Internap Corp (NASDAQ:INAP).
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We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
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Now, let’s take a glance at the fresh action surrounding Internap Corp (NASDAQ:INAP).
What have hedge funds been doing with Internap Corp (NASDAQ:INAP)?
At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 27% from the second quarter of 2016. On the other hand, there were a total of 12 hedge funds with a bullish position in INAP at the beginning of this year. So, let’s examine 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, Mario Gabelli’s GAMCO Investors has the biggest position in Internap Corp (NASDAQ:INAP), worth close to $12.1 million, amounting to 0.1% of its total 13F portfolio. Coming in second is Renaissance Technologies, one of the largest hedge funds in the world, holding a $1.8 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish encompass Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors. 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.
Because Internap Corp (NASDAQ:INAP) has weathered falling interest from the smart money, we can see that there is a sect of hedge funds who sold off their full holdings by the end of the third quarter. At the top of the heap, Constantinos J. Christofilis’s Archon Capital Management said goodbye to the largest stake of all the hedgies studied by Insider Monkey, totaling about $0.9 million in stock. Mark Coe’s fund, Coe Capital Management, also dumped its stock, about $0.4 million worth of INAP shares.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Internap Corp (NASDAQ:INAP) but similarly valued. These stocks are Affimed NV (NASDAQ:AFMD), CIBER, Inc. (NYSE:CBR), ADMA Biologics Inc (NASDAQ:ADMA), and Harvard Bioscience, Inc. (NASDAQ:HBIO). This group of stocks’ market valuations match INAP’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AFMD | 9 | 20154 | 0 |
| CBR | 7 | 5983 | -3 |
| ADMA | 6 | 50046 | -2 |
| HBIO | 6 | 6440 | -1 |
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $15 million in INAP’s case. Affimed NV (NASDAQ:AFMD) is the most popular stock in this table. On the other hand ADMA Biologics Inc (NASDAQ:ADMA) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Internap Corp (NASDAQ:INAP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: none.
