Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Lionbridge Technologies, Inc. (NASDAQ:LIOX).
Is Lionbridge Technologies, Inc. (NASDAQ:LIOX) a worthy investment today? Hedge funds are taking a bullish view. The number of bullish hedge fund bets advanced by 1 lately. 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 Sorrentto Therapeutics Inc (NASDAQ:SRNE), Amyris Inc (NASDAQ:AMRS), and Telenav Inc (NASDAQ:TNAV) to gather more data points.
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Now, let’s go over the fresh action regarding Lionbridge Technologies, Inc. (NASDAQ:LIOX).
What have hedge funds been doing with Lionbridge Technologies, Inc. (NASDAQ:LIOX)?
Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Glenn J. Krevlin’s Glenhill Advisors has the number one position in Lionbridge Technologies, Inc. (NASDAQ:LIOX), worth close to $37.8 million, amounting to 3% of its total 13F portfolio. Coming in second is Portolan Capital Management, led by George McCabe, holding an $8.2 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Other peers that hold long positions comprise Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Phil Frohlich’s Prescott Group Capital Management.
Consequently, specific money managers have jumped into Lionbridge Technologies, Inc. (NASDAQ:LIOX) headfirst. Citadel Investment Group, managed by Ken Griffin, established the most valuable position in Lionbridge Technologies, Inc. (NASDAQ:LIOX). Citadel Investment Group had $1.1 million invested in the company at the end of the quarter. Douglas T. Granat’s Trigran Investments also initiated an $0.4 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Matthew Tewksbury’s Stevens Capital Management, and Neil Chriss’s Hutchin Hill Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Lionbridge Technologies, Inc. (NASDAQ:LIOX) but similarly valued. We will take a look at Sorrentto Therapeutics Inc (NASDAQ:SRNE), Amyris Inc (NASDAQ:AMRS), Telenav Inc (NASDAQ:TNAV), and PDF Solutions, Inc. (NASDAQ:PDFS). This group of stocks’ market caps resemble LIOX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SRNE | 13 | 58933 | 3 |
| AMRS | 4 | 4374 | -1 |
| TNAV | 16 | 66295 | -4 |
| PDFS | 19 | 56317 | 5 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $58 million in LIOX’s case. PDF Solutions, Inc. (NASDAQ:PDFS) is the most popular stock in this table. On the other hand Amyris Inc (NASDAQ:AMRS) is the least popular one with only 4 bullish hedge fund positions. Lionbridge Technologies, Inc. (NASDAQ:LIOX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PDFS might be a better candidate to consider a long position.
