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 Sierra Wireless, Inc. (USA) (NASDAQ:SWIR).
Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) investors should pay attention to an increase in enthusiasm from smart money lately. There were 8 hedge funds in our database with SWIR holdings 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 Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH), Cascade Bancorp (NASDAQ:CACB), and Revance Therapeutics Inc (NASDAQ:RVNC) to gather more data points.
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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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With all of this in mind, we’re going to take a glance at the latest action regarding Sierra Wireless, Inc. (USA) (NASDAQ:SWIR).
How are hedge funds trading Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)?
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 33% from the previous quarter. By comparison, 6 hedge funds held shares or bullish call options in SWIR heading into this year. So, let’s check out 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, Millennium Management, one of the 10 largest hedge funds in the world, holds the biggest position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). According to regulatory filings, the fund has a $0.8 million position in the stock, comprising less than 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons’ Renaissance Technologies, holding a $0.7 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Joseph Mathias’s Concourse Capital 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.
As aggregate interest increased, key hedge funds were leading the bulls’ herd. Renaissance Technologies assembled the most outsized position in Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), followed by Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, which initiated a $0.6 million position during the quarter. The following funds were also among the new SWIR investors: Ken Griffin’s Citadel Investment Group, John Overdeck and David Siegel’s Two Sigma Advisors, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s go over hedge fund activity in other stocks similar to Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). We will take a look at Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH), Cascade Bancorp (NASDAQ:CACB), Revance Therapeutics Inc (NASDAQ:RVNC), and American Midstream Partners LP (NYSE:AMID). This group of stocks’ market valuations are similar to SWIR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RUTH | 17 | 31847 | 1 |
| CACB | 9 | 101135 | 0 |
| RVNC | 4 | 32673 | -6 |
| AMID | 6 | 14223 | 2 |
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $4 million in SWIR’s case. Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) is the most popular stock in this table. On the other hand Revance Therapeutics Inc (NASDAQ:RVNC) is the least popular one with only 4 bullish hedge fund positions. Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RUTH might be a better candidate to consider taking a long position in.
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