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Move Inc. (MOVE): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

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Move Inc. (NASDAQ:MOVE) was in 20 hedge funds’ portfolio at the end of March. MOVE shareholders have witnessed an increase in enthusiasm from smart money of late. There were 18 hedge funds in our database with MOVE holdings at the end of the previous quarter.

According to most market participants, hedge funds are seen as unimportant, outdated investment vehicles of the past. While there are over 8000 funds in operation today, we at Insider Monkey hone in on the crème de la crème of this group, close to 450 funds. Most estimates calculate that this group oversees most of the smart money’s total capital, and by tracking their top investments, we have found a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 outperformed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Just as key, positive insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are a variety of motivations for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the key action regarding Move Inc. (NASDAQ:MOVE).

How have hedgies been trading Move Inc. (NASDAQ:MOVE)?

At Q1’s end, a total of 20 of the hedge funds we track held long positions in this stock, a change of 11% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes substantially.

Move Inc. (NASDAQ:MOVE)When looking at the hedgies we track, Peter S. Park’s Park West Asset Management had the biggest position in Move Inc. (NASDAQ:MOVE), worth close to $45.4 million, accounting for 5.1% of its total 13F portfolio. On Park West Asset Management’s heels is Nierenberg Investment Management, managed by David Nierenberg, which held a $41 million position; 22.6% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Michael Doheny’s Freshford Capital Management, Jim Simons’s Renaissance Technologies and Joseph A. Jolson’s Harvest Capital Strategies.

Consequently, key money managers were breaking ground themselves. TCS Capital Management, managed by Eric Semler, established the most valuable position in Move Inc. (NASDAQ:MOVE). TCS Capital Management had 2.8 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $1 million position during the quarter. The following funds were also among the new MOVE investors: Matthew Hulsizer’s PEAK6 Capital Management, Steven Cohen’s SAC Capital Advisors, and Matthew Hulsizer’s PEAK6 Capital Management.

What have insiders been doing with Move Inc. (NASDAQ:MOVE)?

Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the last 180-day time frame, Move Inc. (NASDAQ:MOVE) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Move Inc. (NASDAQ:MOVE). These stocks are Blucora Inc (NASDAQ:BCOR), HealthStream, Inc. (NASDAQ:HSTM), Renren Inc (NYSE:RENN), Bitauto Hldg Ltd (ADR) (NYSE:BITA), and SouFun Holdings Limited (ADR) (NYSE:SFUN). This group of stocks are in the internet information providers industry and their market caps resemble MOVE’s market cap.

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