Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here is Why Hedge Funds Are Betting On IAC/InterActiveCorp (NASDAQ:IACI)

Page 1 of 2

Is IAC/InterActiveCorp (NASDAQ:IACI) a cheap stock to buy now? Hedge funds are becoming increasingly optimistic about the stock. The number of long hedge fund bets advanced by 5 to 55 at the end of the first quarter. This is a very large number for a $6.5 billion stock. In this article we will share Corsair Capital’s views on IAC/InterActiveCorp (NASDAQ:IACI).

But why do we track the hedge fund activities? From one point of view we can argue that hedge funds are consistently underperforming when it comes to net returns over the last three years, when compared to the S&P 500. But that doesn’t mean that we should completely neglect the hedge funds’ activities. There are various reasons behind the low hedge fund returns. Our research indicated that hedge funds’ long positions actually beat the market. In our back-tests covering the 1999-2012 period hedge funds’ top small cap stocks edged the S&P 500 index by double digits annually. The 15 most popular small cap stock picks among hedge funds also bested passive index funds by around 80 percentage points over the 34 month period beginning with September 2012 (read the details here). 

Corsair Capital talked about its AICI position in its 2015 Q1 investor letter. We pay attention to Corsair Capital’s views because Corsair Select fund delivered a net return of 13.6% annually since its inception at the beginning of 2004. S&P 500 Index returned only 7.9% during the same period. Corsair Select also returned 6.1% during the first quarter, outperforming the S&P 500 by more than 5 percentage points. Here is what they said about IACI:

Jay Petschek And Steven Major
Jay Petschek And Steven Major
Corsair Capital Management

“IAC Corp. (“IACI”), featured in the Appendix of our Q3 2014 investor letter, gained 11% in the quarter as the company reported a reacceleration of subscriber growth at in January, reaffirmed its goal of achieving Match Group EBITDA of $500 million in 2016 and revealed that monthly active users of Tinder, a free mobile dating application, had tripled in 2014. Additionally, the company rolled out its new TinderPlus mobile application, offering paid subscribers enhanced features on top of the free version. We expect Tinder to generate significant revenue and EBITDA by 2016 from layering advertising onto the free version of Tinder and through paid subscriptions to TinderPlus. We believe IACI is worth over $100 per share and continue to expect Chairman Barry Diller, as his history suggests, to spin-off the Match Group to unlock shareholder value. IACI closed the quarter trading at a price of $67.47 per share.”

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!