Do Hedge Funds Love Brightcove Inc (BCOV)?

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Due to the fact that Brightcove Inc (NASDAQ:BCOV) has faced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of hedge funds that elected to cut their positions entirely by the end of the third quarter. It’s worth mentioning that Matthew Hulsizer’s PEAK6 Capital Management dropped the largest stake of the 700 funds followed by Insider Monkey, totaling close to $0.4 million in stock, and Chao Ku’s Nine Chapters Capital Management was right behind this move, as the fund cut about $0.3 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 1 fund by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Brightcove Inc (NASDAQ:BCOV) but similarly valued. We will take a look at Richmont Mines Inc. (USA) (NYSEAMEX:RIC), Biotie Therapies Oyj (ADR) (NASDAQ:BITI), New York & Company, Inc. (NYSE:NWY), and Westport Innovations Inc. (USA) (NASDAQ:WPRT). This group of stocks’ market valuations are similar to BCOV’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RIC 4 8796 -1
BITI 6 26594 -2
NWY 14 22630 -1
WPRT 7 2875 1

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $14 million in BCOV’s case. New York & Company, Inc. (NYSE:NWY)) is the most popular stock in this table, while Richmont Mines Inc. (USA) (NYSEAMEX:RIC) is the least popular one. In comparison Brightcove Inc (NASDAQ:BCOV) has the same number of bullish hedge fund positions as the most popular stock in the group – New York & Company, Inc. (NYSE:NWY). Although, this may indicate that this stock represents a good buying opportunity, further and more detailed research is needed.

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