The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Sphere 3D Corp. (NASDAQ:ANY).
Sphere 3D Corp. (NASDAQ:ANY) shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. ANY was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. There were 3 hedge funds in our database with ANY holdings at the end of the previous quarter. At the end of this article we will also compare ANY to other stocks including Patriot Transportation Holding Inc (NASDAQ:PATI), Southern Connecticut Bancorp Inc. (NYSEMKT:SSE), and Willbros Group Inc (NYSE:WG) to get a better sense of its popularity.
According to most investors, hedge funds are seen as worthless, old investment vehicles of yesteryear. While there are more than 8000 funds in operation today, We look at the crème de la crème of this club, about 700 funds. These money managers handle the lion’s share of all hedge funds’ total asset base, and by monitoring their finest stock picks, Insider Monkey has determined a few investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to take a look at the latest action regarding Sphere 3D Corp. (NASDAQ:ANY).
What does the smart money think about Sphere 3D Corp. (NASDAQ:ANY)?
At Q3’s end, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Cyrus Capital Partners, managed by Stephen C. Freidheim, holds the most valuable position in Sphere 3D Corp. (NASDAQ:ANY). Cyrus Capital Partners has an $12.9 million position in the stock, comprising 1.4% of its 13F portfolio. The second most bullish fund manager is Clinton Group, led by George Hall, holding an $1.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors with similar optimism consist of George Hall’s Clinton Group, and Ken Griffin’s Citadel Investment Group.
As one would reasonably expect, some big names have jumped into Sphere 3D Corp. (NASDAQ:ANY) headfirst. Clinton Group, managed by George Hall, created the most outsized call position in Sphere 3D Corp. (NASDAQ:ANY). Clinton Group had $0.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a small position in the stock.
Let’s now review hedge fund activity in other stocks similar to Sphere 3D Corp. (NASDAQ:ANY). These stocks are Patriot Transportation Holding Inc (NASDAQ:PATI), Southern Connecticut Bancorp Inc. (NYSEMKT:SSE), Willbros Group Inc (NYSE:WG), and TCP International Holdings Ltd (NYSE:TCPI). All of these stocks’ market caps resemble ANY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PATI | 4 | 11813 | -1 |
| SSE | 12 | 13003 | -4 |
| WG | 7 | 6905 | -5 |
| TCPI | 6 | 5354 | 1 |
As you can see these stocks had an average of 7.25 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $15 million in ANY’s case. Southern Connecticut Bancorp Inc. (NYSEMKT:SSE) is the most popular stock in this table. On the other hand Patriot Transportation Holding Inc (NASDAQ:PATI) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Sphere 3D Corp. (NASDAQ:ANY) is even less popular than PATI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
