Should You Follow Insiders Into Actua Corp (ACTA)?

Hedge fund activity in Actua Corp (NASDAQ:ACTA)

At the end of the first quarter, a total of seven of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from the previous quarter. When it comes to the total value of those holdings, however, we see a slightly bearish sign in the fact that total value of holdings decreased to about $10.06 million by the end of the first quarter of 2015 from about $14.05 million at the end of the fourth quarter of 2014. This is a 28.37% decline and should be noted even while taking into consideration that the stock plunged 16.13% from January 2 to March 31 of this year, which accounted for some of that dip in total value.

Of the funds tracked by Insider Monkey, SG Capital Management, managed by Ken Grossman and Glen Schneider, holds the largest position in Actua Corp (NASDAQ:ACTA). SG Capital Management has a $6.3 million position in the stock, comprising 1.8% of its 13F portfolio. On SG Capital Management’s heels is Renaissance Technologies, managed by Jim Simons, which held a $1.1 million position: less than 0.1% of its 13F portfolio. Some other hedgies that hold long positions comprise D. E. Shaw’s D E Shaw, and Josh Goldberg’s G2 Investment Partners Management.

As aggregate interest increased, some big names were leading the bulls’ herd. The aforementioned Renaissance Technologies assembled the most outsized position in Actua Corp (NASDAQ:ACTA) with its $1.1 million investment in the company. Ken Griffin‘s Citadel Investment Group meanwhile initiated a $556,000 position during the quarter. The only other fund with a new position in the stock was Peter Muller’s PDT Partners.

While the total investments of hedge funds in the stock decreased slightly during the first quarter and they appear to have accurately predicted its dip early in the second quarter, the massive spike in confidence by insiders in the company is now pushing the next growth trend for the stock, which is up nearly 18% over the last month. Given that, we also recommend going long on Actua Corp (NASDAQ:ACTA).

Disclosure: None