Here is What Hedge Funds Think About QAD Inc. (QADA)

Consequently, specific money managers were leading the bulls’ herd. AQR Capital Management, managed by Cliff Asness, initiated the most outsized position in QAD Inc. (NASDAQ:QADA), having reported a $0.2 million investment in the company at the end of the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as QAD Inc. (NASDAQ:QADA) but similarly valued. We will take a look at Actua Corp (NASDAQ:ACTA), Intralinks Holdings Inc (NYSE:IL), Vera Bradley, Inc. (NASDAQ:VRA), and Fidelity Southern Corporation (NASDAQ:LION). All of these stocks’ market caps are closest to QADA’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. Intralinks Holdings Inc (NYSE:IL) is the most popular stock in this table. On the other hand Actua Corp (NASDAQ:ACTA) is the least popular one with only 8 bullish hedge fund positions. Although QAD Inc. (NASDAQ:QADA) is not the least popular stock in this group, with 11 top funds holding long positions, the amount invested in this stock stood at $46 million at the end of the quarter, significantly below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard IL might be a better candidate to consider a long position.