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 NQ Mobile Inc (ADR) (NYSE:NQ) .
NQ Mobile Inc (ADR) (NYSE:NQ) has seen an increase in enthusiasm from smart money in recent months. There were 8 hedge funds in our database with NQ positions at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Park Electrochemical Corp. (NYSE:PKE), Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI), and OncoMed Pharmaceuticals Inc (NASDAQ:OMED) to gather more data points.
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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With all of this in mind, let’s view the new action encompassing NQ Mobile Inc (ADR) (NYSE:NQ).
Hedge fund activity in NQ Mobile Inc (ADR) (NYSE:NQ)
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 14% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in NQ over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Graham Capital Management, led by Kenneth Tropin, holds the biggest position in NQ Mobile Inc (ADR) (NYSE:NQ). According to its latest 13F filing, the fund has a $5.3 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $2 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism include Millennium Management, one of the 10 largest hedge funds in the world, Peter A. Wright’s P.A.W. CAPITAL PARTNERS and Ken Griffin’s Citadel Investment Group. 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.
With a general bullishness amongst the heavyweights, some big names have jumped into NQ Mobile Inc (ADR) (NYSE:NQ) headfirst. Israel Englander’s Millennium Management created the biggest position in NQ Mobile Inc (ADR) (NYSE:NQ), worth roughly $1.2 million at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.5 million investment in the stock during the quarter.
Let’s check out hedge fund activity in other stocks similar to NQ Mobile Inc (ADR) (NYSE:NQ). We will take a look at Park Electrochemical Corp. (NYSE:PKE), Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI), OncoMed Pharmaceuticals Inc (NASDAQ:OMED), and Organovo Holdings Inc (NYSEMKT:ONVO). This group of stocks’ market values resemble NQ’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PKE | 7 | 80580 | 0 |
| HYI | 1 | 2363 | -1 |
| OMED | 14 | 56730 | 6 |
| ONVO | 9 | 3356 | 2 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $10 million in NQ’s case. OncoMed Pharmaceuticals Inc (NASDAQ:OMED) is the most popular stock in this table. On the other hand Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI) is the least popular one with only 1 bullish hedge fund positions. NQ Mobile Inc (ADR) (NYSE:NQ) 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 OMED might be a better candidate to consider taking a long position in.
Disclosure: None
