The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Kforce Inc. (NASDAQ:KFRC) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Kforce Inc. (NASDAQ:KFRC) was in 20 hedge funds’ portfolios at the end of September. KFRC investors should be aware of an increase in support from the world’s most elite money managers lately. There were 18 hedge funds in our database with KFRC holdings at the end of the previous quarter. At the end of this article we will also compare KFRC to other stocks, including Square 1 Financial Inc (NASDAQ:SQBK), Coherus Biosciences Inc (NASDAQ:CHRS), and Rexford Industrial Realty Inc (NYSE:REXR) to get a better sense of its popularity.
Follow Kforce Inc (NASDAQ:KFRC)
Follow Kforce Inc (NASDAQ:KFRC)
Today there are a multitude of methods that stock traders have at their disposal to size up their holdings. A couple of the most useful methods are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the top investment managers can outclass their index-focused peers by a significant margin (see the details here).
Keeping this in mind, let’s review the new action surrounding Kforce Inc. (NASDAQ:KFRC).
What does the smart money think about Kforce Inc. (NASDAQ:KFRC)?
At Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 11% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Lee Munder Capital Group, managed by Lee Munder, holds the largest position in Kforce Inc. (NASDAQ:KFRC). According to its latest 13F filing, the fund has a $21.6 million position in the stock, comprising 0.5% of its 13F portfolio. The second most bullish fund manager is Chuck Royce of Royce & Associates, with a $9.7 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish encompass Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies and Ken Griffin’s Citadel Investment Group.
As one would reasonably expect, key money managers were leading the bulls’ herd. Driehaus Capital, managed by Richard Driehaus, assembled the largest position in Kforce Inc. (NASDAQ:KFRC), worth some $3.6 million at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $0.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Joel Greenblatt’s Gotham Asset Management, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Kforce Inc. (NASDAQ:KFRC) but similarly valued. These stocks are Square 1 Financial Inc (NASDAQ:SQBK), Coherus Biosciences Inc (NASDAQ:CHRS), Rexford Industrial Realty Inc (NYSE:REXR), and Zoe’s Kitchen Inc (NYSE:ZOES). This group of stocks’ market valuations match KFRC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SQBK | 12 | 150023 | -4 |
| CHRS | 17 | 98593 | -2 |
| REXR | 7 | 67854 | -3 |
| ZOES | 11 | 124945 | 0 |
As you can see these stocks had an average of 112 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $71 million in KFRC’s case, not a positive sign. Coherus Biosciences Inc (NASDAQ:CHRS) is leading the pack, while Rexford Industrial Realty Inc (NYSE:REXR) is the least popular one with only 7 bullish hedge fund positions. Kforce Inc. (NASDAQ:KFRC) clearly outshines them all, with 20 hedgies betting on it. 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.
