The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Upland Software Inc (NASDAQ:UPLD) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Upland Software Inc (NASDAQ:UPLD) has experienced an increase in hedge fund sentiment of late. 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 Community Healthcare Trust Inc (NYSE:CHCT), JG Wentworth Co (NYSE:JGW), and API Technologies Corp (NASDAQ:ATNY) to gather more data points.
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To most stock holders, hedge funds are viewed as worthless, old investment tools of years past. While there are more than 8000 funds in operation at present, Experts at hedge fund tracking site Insider Monkey look at the crème de la crème of this club, about 700 funds. These hedge fund managers preside over bulk of all hedge funds’ total asset base, and by keeping an eye on their highest performing stock picks, Insider Monkey has spotted a number of investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, let’s take a gander at the latest action surrounding Upland Software Inc (NASDAQ:UPLD).
Hedge fund activity in Upland Software Inc (NASDAQ:UPLD)
At the end of September, a total of 4 of the hedge funds tracked by Insider Monkey were bullish in this stock, an increase of 33% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Anand Parekh’s Alyeska Investment Group had the most valuable position in Upland Software Inc (NASDAQ:UPLD), worth close to $1.9 million, comprising less than 0.1%% of its total 13F portfolio. The second most bullish hedge fund manager is Charles Paquelet of Skylands Capital, with a $0.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism comprise Jim Simons’ Renaissance Technologies, and Gavin Saitowitz and Cisco J. Del Valle’s Springbok Capital.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Springbok Capital established the most valuable position in Upland Software Inc (NASDAQ:UPLD). Springbok Capital had $0 million invested in the company at the end of the quarter.
Let’s also examine hedge fund activity in other stocks similar to Upland Software Inc (NASDAQ:UPLD). We will take a look at Community Healthcare Trust Inc (NYSE:CHCT), JG Wentworth Co (NYSE:JGW), API Technologies Corp (NASDAQ:ATNY), and Performant Financial Corp (NASDAQ:PFMT). This group of stocks’ market valuations resemble Upland Software Inc (NASDAQ:UPLD)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CHCT | 4 | 14821 | 0 |
| JGW | 4 | 22279 | -4 |
| ATNY | 5 | 25565 | 0 |
| PFMT | 11 | 16411 | -1 |
As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. Performant Financial Corp (NASDAQ:PFMT) is the most popular stock in this table with 11 funds holding shares as of the end of September. On the other hand, Upland Software Inc (NASDAQ:UPLD) is even less popular than Community Healthcare Trust Inc (NYSE:CHCT), which is the least popular stock from the table. 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.