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In this article, we are going to take a closer look at Model N Inc (NYSE:MODN). Overall, the stock didn’t see a lot of action during the third quarter and the hedge fund sentiment was unchanged. The stock was included in the portfolios of 13 funds from our database at the end of September. At the end of this article we will also compare MODN to other stocks including Aquinox Pharmaceuticals Inc (NASDAQ:AQXP), Luxfer Holdings PLC (ADR) (NYSE:LXFR), and FRP Holdings Inc (NASDAQ:FRPH) to get a better sense of its popularity.
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With all of this in mind, we’re going to take a gander at the new action regarding Model N Inc (NYSE:MODN).
What have hedge funds been doing with Model N Inc (NYSE:MODN)?
Heading into the fourth quarter of 2016, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged over the quarter. Below, you can check out the change in hedge fund sentiment towards MODN over the last five quarters. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, George Soros’ Soros Fund Management holds the most valuable position in Model N Inc (NYSE:MODN). Soros Fund Management has a $30 million position in the stock. The second most bullish fund manager is Robert G. Moses’ RGM Capital which holds a $26.9 million position; 3% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors with similar optimism encompass Jeremy Green’s Redmile Group, Renaissance Technologies, one of the largest hedge funds in the world, and Brandon Osten’s Venator Capital Management. We should note that two of these hedge funds (Soros Fund Management and RGM Capital) 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.
On the other hand, there are some funds that sold off their entire stakes during the third quarter. Interestingly, George McCabe’s Portolan Capital Management got rid of the biggest stake of all the hedgies studied by Insider Monkey, worth close to $7.3 million in stock. Israel Englander’s fund, Millennium Management, also dropped its stock, about $0.3 million worth.
Let’s now take a look at hedge fund activity in other stocks similar to Model N Inc (NYSE:MODN). We will take a look at Aquinox Pharmaceuticals Inc (NASDAQ:AQXP), Luxfer Holdings PLC (ADR) (NYSE:LXFR), FRP Holdings Inc (NASDAQ:FRPH), and Davids Tea Inc (NASDAQ:DTEA). All of these stocks’ market caps match MODN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AQXP | 12 | 190612 | 4 |
| LXFR | 12 | 85904 | 2 |
| FRPH | 6 | 39702 | 1 |
| DTEA | 4 | 4882 | 4 |
As you can see these stocks had an average of eight funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $105 million in MODN’s case. Aquinox Pharmaceuticals Inc (NASDAQ:AQXP) and Luxfer Holdings PLC (ADR) (NYSE:LXFR) are the most popular stocks in this table. On the other hand Davids Tea Inc (NASDAQ:DTEA) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Model N Inc (NYSE:MODN) 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
