Is ExOne Co (XONE) Going to Burn You?

ExOne Co (NASDAQ:XONE) was in 8 hedge funds’ portfolio at the end of March. XONE shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. There were 0 hedge funds in our database with XONE positions at the end of the previous quarter.

In the eyes of most investors, hedge funds are perceived as underperforming, outdated investment vehicles of years past. While there are over 8000 funds in operation today, we at Insider Monkey hone in on the bigwigs of this club, close to 450 funds. Most estimates calculate that this group oversees most of the smart money’s total capital, and by monitoring their best investments, we have come up with a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as important, positive insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of motivations for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this strategy if “monkeys” understand what to do (learn more here).

With these “truths” under our belt, we’re going to take a look at the latest action surrounding ExOne Co (NASDAQ:XONE).

What have hedge funds been doing with ExOne Co (NASDAQ:XONE)?

Consequently, key hedge funds have jumped into ExOne Co (NASDAQ:XONE) headfirst. Driehaus Capital, managed by Richard Driehaus, initiated the most outsized position in ExOne Co (NASDAQ:XONE). Driehaus Capital had 14.4 million invested in the company at the end of the quarter. Drew Cupps’s Cupps Capital Management also made a $8.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Charles Clough’s Clough Capital Partners, Clifford G. Fox’s Columbus Circle Investors, and Chase Coleman and Feroz Dewan’s Tiger Global Management LLC.

What have insiders been doing with ExOne Co (NASDAQ:XONE)?

Insider buying is particularly usable when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, ExOne Co (NASDAQ:XONE) has experienced 0 unique insiders buying, and 0 insider sales (see the details of insider trades here).

With the results demonstrated by our studies, everyday investors should always monitor hedge fund and insider trading sentiment, and ExOne Co (NASDAQ:XONE) is no exception.

Click here to learn why you should track hedge funds