Here is What Hedge Funds Think About PROS Holdings, Inc. (PRO)

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As industrywide interest jumped, some big names were breaking ground themselves. D E Shaw, managed by D. E. Shaw, created the most outsized position in PROS Holdings, Inc. (NYSE:PRO). The fund had $0.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made an $0.2 million investment in the stock during the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as PROS Holdings, Inc. (NYSE:PRO) but similarly valued. We will take a look at Flamel Technologies S.A. (ADR) (NASDAQ:FLML), Intersect ENT Inc (NASDAQ:XENT), Eastman Kodak Co. (NYSE:KODK), and Cincinnati Bell Inc. (NYSE:CBB). This group of stocks’ market values are closest to PRO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLML 13 189664 -4
XENT 16 57623 -7
KODK 11 183081 -2
CBB 15 60961 4

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was $80 million in PRO’s case, a rather negative sign. While Intersect ENT Inc (NASDAQ:XENT) is preferred by a larger number of hedge funds, Eastman Kodak Co. (NYSE:KODK) has lost some of its appeal, with only 11 bullish hedge fund positions reported at the end of the quarter. Compared to these stocks PROS Holdings, Inc. (NYSE:PRO) is even less popular than KODK. 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 behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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