Extreme Networks, Inc (EXTR)Hedge Funds Are Snapping Up

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Extreme Networks, Inc (NASDAQ:EXTR) in this article.

Extreme Networks, Inc (NASDAQ:EXTR) shareholders have witnessed an increase in hedge fund interest lately. EXTR was in 19 hedge funds’ portfolios at the end of September. There were 16 hedge funds in our database with EXTR positions at the end of the previous quarter. 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 ProQR Therapeutics NV (NASDAQ:PRQR), Regulus Therapeutics Inc (NASDAQ:RGLS), and First Defiance Financial (NASDAQ:FDEF) to gather more data points.

If you’d ask most market participants, hedge funds are assumed to be unimportant, old financial vehicles of the past. While there are more than 8000 funds with their doors open today, We choose to focus on the leaders of this club, approximately 700 funds. These investment experts administer most of all hedge funds’ total asset base, and by watching their top equity investments, Insider Monkey has formulated a number of investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points annually for a decade in their back tests.

Now, we’re going to take a glance at the key action regarding Extreme Networks, Inc (NASDAQ:EXTR).

How are hedge funds trading Extreme Networks, Inc (NASDAQ:EXTR)?

At the Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 19% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Arbiter Partners Capital Management, managed by Paul J. Isaac, holds the most valuable position in Extreme Networks, Inc (NASDAQ:EXTR). Arbiter Partners Capital Management has a $16.5 million position in the stock, comprising 1.6% of its 13F portfolio. The second largest stake is held by Trigran Investments, led by Douglas T. Granat, holding a $12.7 million position; the fund has 4% of its 13F portfolio invested in the stock. Some other peers with similar optimism consist of Jim Simons’ Renaissance Technologies, Chuck Royce’s Royce & Associates and Israel Englander’s Millennium Management.

As aggregate interest increased, specific money managers were leading the bulls’ herd. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, initiated the largest position in Extreme Networks, Inc (NASDAQ:EXTR). Algert Coldiron Investors had $2.2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new EXTR investors: D. E. Shaw’s D E Shaw, Noam Gottesman’s GLG Partners, and David Cohen and Harold Levy’s Iridian Asset Management.

Let’s check out hedge fund activity in other stocks similar to Extreme Networks, Inc (NASDAQ:EXTR). These stocks are ProQR Therapeutics NV (NASDAQ:PRQR), Regulus Therapeutics Inc (NASDAQ:RGLS), First Defiance Financial (NASDAQ:FDEF), and Versartic Inc (NASDAQ:VSAR). This group of stocks’ market caps are similar to EXTR’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $66 million, compared to $72 million in EXTR’s case. ProQR Therapeutics NV (NASDAQ:PRQR) is the most popular stock in this table, while First Defiance Financial (NASDAQ:FDEF) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Extreme Networks, Inc (NASDAQ:EXTR) 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.