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 magicJack VocalTec Ltd (NASDAQ:CALL).
Is magicJack VocalTec Ltd (NASDAQ:CALL) a healthy stock for your portfolio? It looks like the smart money is selling, as the number of funds from our database long the stock declined by two last quarter. At the end of this article we will also compare CALL to other stocks including Ashford Inc (NYSEMKT:AINC), Five Star Quality Care, Inc. (NYSE:FVE), and Eiger Biopharmaceuticals Inc (NASDAQ:EIGR) to get a better sense of its popularity.
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Now, let’s go over the key action surrounding magicJack VocalTec Ltd (NASDAQ:CALL).
How have hedgies been trading magicJack VocalTec Ltd (NASDAQ:CALL)?
At Q3’s end, six hedge funds tracked by Insider Monkey were long this stock, down by 25% from the end of the second quarter. Below, you can check out the change in hedge fund sentiment towards CALL over the last five quarters. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Renaissance Technologies, which is one of the largest hedge funds in the world, has the biggest position in magicJack VocalTec Ltd (NASDAQ:CALL), worth close to $4.7 million. Coming in second is Charles Frumberg of Emancipation Capital holding a $0.5 million position. Remaining members of the smart money that hold long positions comprise Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, D. E. Shaw’s D E Shaw, and Israel Englander’s Millennium Management. 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.
Seeing as magicJack VocalTec Ltd (NASDAQ:CALL) has sustained declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of funds that slashed their entire stakes last quarter. At the top of the heap, Constantinos J. Christofilis’ Archon Capital Management said goodbye to the biggest stake of the “upper crust” of funds studied by Insider Monkey, worth an estimated $2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.1 million worth of shares.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as magicJack VocalTec Ltd (NASDAQ:CALL) but similarly valued. We will take a look at Ashford Inc (NYSEMKT:AINC), Five Star Quality Care, Inc. (NYSE:FVE), Eiger Biopharmaceuticals Inc (NASDAQ:EIGR), and Hugoton Royalty Trust (NYSE:HGT). This group of stocks’ market valuations resemble CALL’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AINC | 4 | 10454 | -1 |
| FVE | 8 | 15228 | -1 |
| EIGR | 5 | 14312 | 0 |
| HGT | 5 | 1572 | 1 |
As you can see these stocks had an average of five hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $6 million in CALL’s case. Five Star Quality Care, Inc. (NYSE:FVE) is the most popular stock in this table. On the other hand Ashford Inc (NYSEMKT:AINC) is the least popular one with only four funds holding shares. magicJack VocalTec Ltd (NASDAQ:CALL) 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 FVE might be a better candidate to consider taking a long position in.
Disclosure: None
