Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Cadence Design Systems Inc (NASDAQ:CDNS).
Cadence Design Systems Inc (NASDAQ:CDNS) investors should pay attention to a decrease in hedge fund interest recently. At the end of this article we will also compare CDNS to other stocks including The Middleby Corporation (NASDAQ:MIDD), UGI Corp (NYSE:UGI), and Reinsurance Group of America Inc (NYSE:RGA) to get a better sense of its popularity.
Today there are many gauges stock traders put to use to value their holdings. A duo of the most underrated gauges are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a solid amount (see the details here).
With all of this in mind, we’re going to take a peek at the new action surrounding Cadence Design Systems Inc (NASDAQ:CDNS).
How are hedge funds trading Cadence Design Systems Inc (NASDAQ:CDNS)?
At Q3’s end, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of -10% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Glenview Capital, managed by Larry Robbins, holds the largest position in Cadence Design Systems Inc (NASDAQ:CDNS). Glenview Capital has a $475.9 million position in the stock, comprising 2.4% of its 13F portfolio. The second most bullish fund manager is Jeffrey Tannenbaum of Fir Tree, with a $256.3 million position; the fund has 4.3% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions consist of David S. Winter and David J. Millstone’s 40 North Management, Panayotis Takis Sparaggis’ Alkeon Capital Management and Matthew Sidman’s Three Bays Capital.