The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Mobileiron Inc (NASDAQ:MOBL).
Hedge fund interest in Mobileiron Inc (NASDAQ:MOBL) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare MOBL to other stocks, including UMH Properties, Inc (NYSE:UMH), EnerNOC, Inc. (NASDAQ:ENOC), and CSS Industries, Inc. (NYSE:CSS) to get a better sense of its popularity.
In the eyes of most shareholders, hedge funds are assumed to be unimportant, outdated investment tools of years past. While there are greater than 8000 funds in operation today, Our researchers hone in on the masters of this club, about 700 funds. Most estimates calculate that this group of people have their hands on the majority of all hedge funds’ total asset base, and by tailing their top equity investments, Insider Monkey has come up with a number of investment strategies that have historically exceeded the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, let’s go over the recent action surrounding Mobileiron Inc (NASDAQ:MOBL).
How have hedgies been trading Mobileiron Inc (NASDAQ:MOBL)?
Heading into Q4, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, flat over the quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Hillhouse Capital Management, managed by Lei Zhang, holds the biggest position in Mobileiron Inc (NASDAQ:MOBL). Hillhouse Capital Management has an $3.4 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Maplelane Capital, led by Leon Shaulov, holding an $2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism comprise Anand Parekh’s Alyeska Investment Group, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Ken Griffin’s Citadel Investment Group.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Highbridge Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case, because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Renaissance Technologies).
Let’s check out hedge fund activity in other stocks similar to Mobileiron Inc (NASDAQ:MOBL). These stocks are UMH Properties, Inc (NYSE:UMH), EnerNOC, Inc. (NASDAQ:ENOC), CSS Industries, Inc. (NYSE:CSS), and Preferred Apartment Communities Inc. (NYSEAMEX:APTS). This group of stocks’ market caps match MOBL’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $9 million in MOBL’s case. EnerNOC, Inc. (NASDAQ:ENOC) is the most popular stock in this table. On the other hand UMH Properties, Inc (NYSE:UMH) is the least popular one with only 4 bullish hedge fund positions. Mobileiron Inc (NASDAQ:MOBL) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ENOC might be a better candidate to consider a long position.