The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Marketo Inc (NASDAQ:MKTO).
Marketo investors should pay attention to a decrease in support from the world’s most elite money managers recently. MKTO was in 15 hedge funds’ portfolios at the end of September. There were 17 hedge funds in our database with MKTO holdings at the end of the previous quarter. At the end of this article we will also compare MKTO to other stocks, including Examworks Group, Inc. (NYSE:EXAM), Aduro BioTech Inc (NASDAQ:ADRO), and Atlantic Tele-Network, Inc. (NASDAQ:ATNI) to get a better sense of its popularity.
Follow Marketo Inc. (NASDAQ:MKTO)
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In today’s marketplace there are a lot of formulas stock traders put to use to value their holdings. A duo of the most under-the-radar formulas are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a superb amount (see the details here).
With all of this in mind, let’s take a look at the recent action regarding Marketo Inc (NASDAQ:MKTO).
What does the smart money think about Marketo Inc (NASDAQ:MKTO)?
At the Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -12% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Ionic Capital Management, managed by Bart Baum, holds the biggest position in Marketo Inc (NASDAQ:MKTO). Ionic Capital Management has a $28.6 million position in the stock, comprising 1.6% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, led by Ken Griffin, holding a $28.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers with similar optimism contain Anand Parekh’s Alyeska Investment Group, Jim Simons’ Renaissance Technologies and George McCabe’s Portolan Capital Management.
Seeing as Marketo Inc (NASDAQ:MKTO) has faced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedgies that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that Eric Semler’s TCS Capital Management sold off the largest stake of the 700 funds followed by Insider Monkey, totaling an estimated $4.8 million in call options, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dumped about $2.8 million worth of shares. These transactions are interesting, as total hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Marketo Inc (NASDAQ:MKTO) but similarly valued. These stocks are Examworks Group, Inc. (NYSE:EXAM), Aduro BioTech Inc (NASDAQ:ADRO), Atlantic Tele-Network, Inc. (NASDAQ:ATNI), and Independent Bank Corp (NASDAQ:INDB). This group of stocks’ market caps are closest to MKTO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EXAM | 13 | 100795 | -2 |
| ADRO | 9 | 63154 | -2 |
| ATNI | 9 | 41405 | 0 |
| INDB | 8 | 26253 | 3 |
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $58 million, compared to $97 million in MKTO’s case. Examworks Group, Inc. (NYSE:EXAM) is the most popular stock in this table. On the other hand Independent Bank Corp (NASDAQ:INDB) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Marketo Inc (NASDAQ:MKTO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
