Hedge Funds Were Right to Bet on GoPro Inc (GPRO) and Yahoo! Inc. (YHOO)

Let’s first take a look at hedge fund holdings surrounding Yahoo! Inc. (NASDAQ:YHOO). At the end of March, there were 104 hedge funds with long positions in Yahoo! Inc. (NASDAQ:YHOO) worth $6.48 billion in aggregate, a 14% decrease, compared to 99 funds at the end of 2014. During the first quarter the stock depreciated by around 12% of its value. This indicates that there was a very small capital outflow in Yahoo during the first three months. Also, these hedge funds held around 15.6% of Yahoo’s outstanding stock, which confirms that they are bullish on Yahoo. Among the hedge funds tracked by Insider Monkey, Daniel S. Och‘s OZ Management had the most valuable position in Yahoo! Inc. (NASDAQ:YHOO), worth close to $650.9 million held in about 14.65 million shares by the end of March, up 61% from the previous quarter. On OZ Management’s heels is D.E. Shaw & Co., L.P., managed by David E. Shaw, which held 12.43 million shares at the end of the first quarter, down 9% from a prior quarter, representing a $552.5 million position. Among the bearish investors on Yahoo was James Dinan‘s York Capital Management which opted to sell its entire stake of 9.4 million shares during the first three months. Taking the analyst recommendation into account, we feel that the Yahoo shares can be bought on the dip at the moment.

Coming into hedge fund and insider activity on GoPro Inc (NASDAQ:GPRO), there were 25 hedge funds holding shares worth $284.3 million by the end of March. The stock gained some popularity as there were 22 hedge funds with investment worth $318.7 million by the end of December. However the stock had depreciated more than 30% of its value during the first three months, showing the hedge funds bullish sentiment on stock and they were right to remain bullish as the stock had gained nearly 37% since the end of March. Of the funds tracked by Insider Monkey, John Griffin‘s Blue Ridge Capital had the most valuable position in GoPro Inc (NASDAQ:GPRO), owning 1.1 million shares worth close to $47.8 million. Among the bullish hedge funds is Jim Simons‘ Renaissance Technologies, which initiated a position with 330,800 shares during the first three months. Looking at the recent insider activity on GoPro, one of the Directors, Edward Gihuly sold 196,600 shares in the first week of August. Considering the analyst upgrade and stock performance over the last few months, we are also bullish on GoPro.

Disclosure: None