Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those successful funds in these small-cap stocks. In the following paragraphs, we analyze Jive Software Inc (NASDAQ:JIVE) from the perspective of those successful funds.
Is Jive Software Inc (NASDAQ:JIVE) an outstanding stock to buy now? Hedge funds are definitely actually turning less bullish. The number of bullish hedge fund bets suffered a reduction of 2 recently. JIVE was in 13 hedge funds’ portfolios at the end of September. There were 15 hedge funds in our database with JIVE positions at the end of the previous quarter. At the end of this article we will also compare JIVE to other stocks including Dorian LPG Ltd (NYSE:LPG), UMH Properties, Inc (NYSE:UMH), and BioScrip Inc. (NASDAQ:BIOS) to get a better sense of its popularity.
Follow Jive Software Inc. (NASDAQ:JIVE)
Follow Jive Software Inc. (NASDAQ:JIVE)
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.
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How have hedgies been trading Jive Software Inc (NASDAQ:JIVE)?
Heading into the fourth quarter of 2016, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 3% from the previous quarter. On the other hand, there were a total of 14 hedge funds with a bullish position in JIVE at the beginning of 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.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Okumus Fund Management, led by Ahmet Okumus, holds the number one position in Jive Software Inc (NASDAQ:JIVE). Okumus Fund Management has a $14.5 million position in the stock, comprising 3.3% of its 13F portfolio. The second largest stake is held by Jim Simons’ Renaissance Technologies, which holds a $13.1 million position. Other professional money managers that hold long positions contain Bruce Salomon’s Elberon Capital, Jack Ripsteen’s Potrero Capital Research and Brett Hendrickson’s Nokomis Capital. We should note that Potrero Capital Research is 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.
Due to the fact that Jive Software Inc (NASDAQ:JIVE) has witnessed bearish sentiment from the smart money, it’s safe to say that there were a few money managers that slashed their positions entirely in the third quarter. It’s worth mentioning that William C. Martin’s Raging Capital Management dropped the biggest stake of the 700 funds monitored by Insider Monkey, totaling close to $1.7 million in stock, and David Brown’s Hawk Ridge Management was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Jive Software Inc (NASDAQ:JIVE) but similarly valued. We will take a look at Dorian LPG Ltd (NYSE:LPG), UMH Properties, Inc (NYSE:UMH), BioScrip Inc. (NASDAQ:BIOS), and Supreme Industries, Inc. (NYSEAMEX:STS). All of these stocks’ market caps resemble JIVE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LPG | 8 | 56727 | -2 |
| UMH | 5 | 28818 | 1 |
| BIOS | 20 | 153706 | -3 |
| STS | 9 | 24816 | 3 |
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 $66 million. That figure was $49 million in JIVE’s case. BioScrip Inc. (NASDAQ:BIOS) is the most popular stock in this table. On the other hand UMH Properties, Inc (NYSE:UMH) is the least popular one with only 5 bullish hedge fund positions. Jive Software Inc (NASDAQ:JIVE) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BIOS might be a better candidate to consider taking a long position in.
Disclosure: None
