It was a rough third quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 7% during the quarter. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by about 14 percentage points between June 25 and October 30, as investors fled less-known quantities for safe havens. This was the case with hedge funds, who we heard were pulling money from the market amid the volatility, which included money from small-cap stocks, which they invest in at a higher rate than other investors. This action contributed to the greater decline in these stocks during the tumultuous period. We will study how this market volatility affected their sentiment towards Avid Technology, Inc. (NASDAQ:AVID) during the quarter below.
Hedge fund interest in Avid Technology, Inc. (NASDAQ:AVID) 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 AVID to other stocks including National Storage Affiliates Trust (NYSE:NSA), Phoenix New Media Ltd ADR (NYSE:FENG), and Whitestone REIT (NYSE:WSR) to get a better sense of its popularity.
Follow Avid Technology Inc. (NASDAQ:AVID)
Follow Avid Technology Inc. (NASDAQ:AVID)
According to most traders, hedge funds are perceived as slow, outdated financial tools of yesteryear. While there are over 8000 funds in operation at present, Our experts choose to focus on the masters of this club, approximately 700 funds. These investment experts have their hands on most of all hedge funds’ total capital, and by tracking their first-class stock picks, Insider Monkey has discovered a number of investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points annually for a decade in their back tests.
With all of this in mind, let’s take a look at the fresh action surrounding Avid Technology, Inc. (NASDAQ:AVID).
What have hedge funds been doing with Avid Technology, Inc. (NASDAQ:AVID)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Blum Capital Partners, managed by Richard Blum, holds the number one position in Avid Technology, Inc. (NASDAQ:AVID). Blum Capital Partners has a $54.7 million position in the stock, comprising 29.1% of its 13F portfolio. The second largest stake is held by Cove Street Capital, managed by Jeffrey Bronchick, which holds a $15.3 million position; 2% of its 13F portfolio is allocated to the stock. Some other peers that are bullish comprise Brett Hendrickson’s Nokomis Capital, Chuck Royce’s Royce & Associates and J. Carlo Cannell’s Cannell Capital.
