Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Global Eagle Acquisition Corp (NASDAQ:ENT) based on that data.
Global Eagle Acquisition Corp (NASDAQ:ENT) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately. At the end of this article we will also compare ENT to other stocks including BroadSoft Inc (NASDAQ:BSFT), Qiwi PLC (NASDAQ:QIWI), and United Fire Group, Inc. (NASDAQ:UFCS) to get a better sense of its popularity.
Follow Global Eagle Entertainment Inc. (NASDAQ:ENT)
Follow Global Eagle Entertainment Inc. (NASDAQ:ENT)
In the 21st century investor’s toolkit there are tons of gauges market participants have at their disposal to appraise their holdings. A pair of the most under-the-radar gauges are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the top picks of the top investment managers can beat the market by a very impressive margin (see the details here).
Keeping this in mind, we’re going to review the new action encompassing Global Eagle Acquisition Corp (NASDAQ:ENT).
What does the smart money think about Global Eagle Acquisition Corp (NASDAQ:ENT)?
Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -11% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, PAR Capital Management, managed by Paul Reeder and Edward Shapiro, holds the largest position in Global Eagle Acquisition Corp (NASDAQ:ENT). PAR Capital Management has an $332.7 million position in the stock, comprising 7% of its 13F portfolio. The second largest stake is held by Abrams Capital Management, managed by David Abrams, which holds an $57.4 million position; the fund has 4.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish include John C. Walker’s Stonerise Capital Management, Lee Munder’s Lee Munder Capital Group and J. Carlo Cannell’s Cannell Capital.
Seeing as Global Eagle Acquisition Corp (NASDAQ:ENT) has experienced declining sentiment from the smart money, we can see that there were a few funds who were dropping their positions entirely last quarter. It’s worth mentioning that Israel Englander’s Millennium Management dropped the largest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $2.6 million in stock. Craig A. Drill’s fund, Craig Drill Capital, also sold off its stock, about $1 million worth. These transactions are interesting, as total hedge fund interest fell by 2 funds last quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Global Eagle Acquisition Corp (NASDAQ:ENT) but similarly valued. We will take a look at BroadSoft Inc (NASDAQ:BSFT), Qiwi PLC (NASDAQ:QIWI), United Fire Group, Inc. (NASDAQ:UFCS), and CONN’S, Inc. (NASDAQ:CONN). This group of stocks’ market caps match ENT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BSFT | 14 | 104403 | -2 |
| QIWI | 8 | 81567 | -2 |
| UFCS | 8 | 19048 | 1 |
| CONN | 12 | 455717 | -12 |
As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $165 million. That figure was $443 million in ENT’s case. BroadSoft Inc (NASDAQ:BSFT) is the most popular stock in this table. On the other hand Qiwi PLC (NASDAQ:QIWI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Global Eagle Acquisition Corp (NASDAQ:ENT) 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 despite the number of funds long the stock dropping by 2.
