Hedge Funds Are Warming Up to ChannelAdvisor Corp (ECOM)

Now, key hedge funds were leading the bulls’ herd. Renaissance Technologies created the most outsized position in ChannelAdvisor Corp (NYSE:ECOM). Renaissance Technologies had $0.8 million invested in the company at the end of the quarter. Paul Hondros’ AlphaOne Capital Partners also initiated a $0.2 million position during the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ChannelAdvisor Corp (NYSE:ECOM) but similarly valued. We will take a look at Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), Papa Murphy’s Holdings Inc (NASDAQ:FRSH), Millennial Media, Inc. (NYSE:MM), and Organovo Holdings Inc (NYSEMKT:ONVO). This group of stocks’ market caps are similar to ECOM’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $15 million in ECOM’s case. Millennial Media, Inc. (NYSE:MM) is the most popular stock in this table. On the other hand Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks ChannelAdvisor Corp (NYSE:ECOM) is only as popular as KTOS and has less money invested in it. 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 really behind this stock yet, though it’s growing more bullish.