We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of United Online, Inc. (NASDAQ:UNTD).
United Online, Inc. (NASDAQ:UNTD) was in 16 hedge funds’ portfolios at the end of the third quarter of 2015. UNTD investors should pay attention to a decrease in enthusiasm from smart money lately. There were 18 hedge funds in our database with UNTD positions at the end of the previous quarter. At the end of this article we will also compare UNTD to other stocks, including Contango Oil & Gas Company (NYSEAMEX:MCF), Enzo Biochem, Inc. (NYSE:ENZ), and Information Services Group, Inc. (NASDAQ:III) to get a better sense of its popularity.
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To most market participants, hedge funds are viewed as slow, old financial tools of years past. While there are greater than 8000 funds with their doors open today, Our experts choose to focus on the masters of this group, approximately 700 funds. These investment experts have their hands on bulk of the hedge fund industry’s total capital, and by paying attention to their matchless stock picks, Insider Monkey has brought to light a few investment strategies that have historically outpaced the market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, let’s take a look at the key action regarding United Online, Inc. (NASDAQ:UNTD).
What have hedge funds been doing with United Online, Inc. (NASDAQ:UNTD)?
At the Q3’s end, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, J. Carlo Cannell’s Cannell Capital has the biggest position in United Online, Inc. (NASDAQ:UNTD), worth close to $5.5 million, accounting for 2% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which holds a $5.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism contain Chuck Royce’s Royce & Associates, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Because United Online, Inc. (NASDAQ:UNTD) has witnessed bearish sentiment from the smart money, logic holds that there lies a certain “tier” of fund managers who sold off their positions entirely in the third quarter. Intriguingly, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC dumped the biggest position of the 700 funds monitored by Insider Monkey, worth an estimated $0.7 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund said goodbye to about $0.3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds in the third quarter.
Let’s go over hedge fund activity in other stocks similar to United Online, Inc. (NASDAQ:UNTD). We will take a look at Contango Oil & Gas Company (NYSEAMEX:MCF), Enzo Biochem, Inc. (NYSE:ENZ), Information Services Group, Inc. (NASDAQ:III), and Rosetta Stone Inc (NYSE:RST). All of these stocks’ market caps are closest to UNTD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MCF | 11 | 56975 | -3 |
| ENZ | 10 | 7486 | -1 |
| III | 5 | 8022 | -5 |
| RST | 12 | 81507 | 1 |
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $38 million. That figure was $30 million in UNTD’s case. Rosetta Stone Inc (NYSE:RST) is the most popular stock in this table with 12 funds reporting long positions. On the other hand Information Services Group, Inc. (NASDAQ:III) is the least popular one. Compared to these stocks United Online, Inc. (NASDAQ:UNTD) 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.
