Benefitfocus Inc (BNFT): Are Hedge Funds Right About This Stock?

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Consequently, key money managers were breaking ground themselves. Renaissance Technologies, one of the largest hedge funds in the world, assembled the most valuable position in Benefitfocus Inc (NASDAQ:BNFT). Renaissance Technologies had $1.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.6 million investment in the stock during the quarter. The following funds were also among the new BNFT investors: Ken Griffin’s Citadel Investment Group, Matthew Hulsizer’s PEAK6 Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Benefitfocus Inc (NASDAQ:BNFT) but similarly valued. We will take a look at Medpace Holdings Inc (NASDAQ:MEDP), Nextera Energy Partners LP (NYSE:NEP), Schweitzer-Mauduit International, Inc. (NYSE:SWM), and BMC Stock Holdings Inc (NASDAQ:BMCH). This group of stocks’ market values resemble BNFT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MEDP 13 50825 13
NEP 19 129380 1
SWM 14 59504 -3
BMCH 25 239738 5

As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $15 million in BNFT’s case. BMC Stock Holdings Inc (NASDAQ:BMCH) is the most popular stock in this table. On the other hand Medpace Holdings Inc (NASDAQ:MEDP) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Benefitfocus Inc (NASDAQ:BNFT) is even less popular than MEDP. 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.

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Disclosure: None




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