Is FXCM Inc (NYSE:FXCM) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy league graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments (for some reason media paid a ton of attention to Ackman’s gigantic JC Penney and Valeant failures) and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
FXCM Inc (NYSE:FXCM) was in 5 hedge funds’ portfolios at the end of September. FXCM Inc (NYSE:FXCM) shareholders have witnessed a decrease in support from the world’s most elite money managers in recent months. There were 8 hedge funds in our database with FXCM Inc (NYSE:FXCM) holdings at the end of the previous quarter. Investors who are aware of the trading environment surrounding the stock may not be surprised, as the shares of FXCM Inc (NYSE:FXCM) declined 40% throughout the 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 Innovative Solutions & Support Inc (NASDAQ:ISSC), Mitcham Industries, Inc. (NASDAQ:MIND), and CymaBay Therapeutics Inc (NASDAQ:CBAY) to gather more data points.
In the 21st century investor’s toolkit, there are a lot of tools shareholders use to appraise their holdings. A couple of the most underrated tools are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform their index-focused peers by a superb amount (see the details here).
Now, let’s check out the fresh action regarding FXCM Inc (NYSE:FXCM).
What have hedge funds been doing with FXCM Inc (NYSE:FXCM)?
Heading into Q4, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 38% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Kenneth Tropin’s Graham Capital Management has the largest position in FXCM Inc (NYSE:FXCM), worth close to $3 million, amounting to 0.4% of its total 13F portfolio. On Graham Capital Management’s heels is Millennium Management, led by Israel Englander, holding a $1.9 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions contain Renaissance Technologies, and John Overdeck and David Siegel’s Two Sigma Advisors.