This Metric Says You Are Smart to Buy Sodastream International Ltd (NASDAQ:SODA)

Sodastream International Ltd (NASDAQ:SODA) was in 12 hedge funds’ portfolio at the end of December. SODA investors should be aware of an increase in enthusiasm from smart money recently. There were 9 hedge funds in our database with SODA positions at the end of the previous quarter.

Sodastream International Ltd (NASDAQ:SODA)

If you’d ask most shareholders, hedge funds are assumed to be slow, old financial vehicles of yesteryear. While there are over 8000 funds in operation at present, we at Insider Monkey hone in on the upper echelon of this group, around 450 funds. Most estimates calculate that this group has its hands on the majority of the smart money’s total asset base, and by keeping an eye on their highest performing investments, we have come up with a number of investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as key, optimistic insider trading sentiment is a second way to parse down the financial markets. As the old adage goes: there are a variety of incentives for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).

With all of this in mind, let’s take a look at the recent action encompassing Sodastream International Ltd (NASDAQ:SODA).

How have hedgies been trading Sodastream International Ltd (NASDAQ:SODA)?

Heading into 2013, a total of 12 of the hedge funds we track were bullish in this stock, a change of 33% from the third quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were upping their holdings substantially.

According to our comprehensive database, Brett Barakett’s Tremblant Capital had the most valuable position in Sodastream International Ltd (NASDAQ:SODA), worth close to $65 million, comprising 3% of its total 13F portfolio. The second largest stake is held by Eric Bannasch of Cadian Capital, with a $61 million position; 1.4% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include John Murphy’s Alydar Capital, D. E. Shaw’s D E Shaw and Drew Cupps’s Cupps Capital Management.

As aggregate interest increased, some big names have jumped into Sodastream International Ltd (NASDAQ:SODA) headfirst. Cupps Capital Management, managed by Drew Cupps, created the most outsized position in Sodastream International Ltd (NASDAQ:SODA). Cupps Capital Management had 13 million invested in the company at the end of the quarter. Mark Broach’s Manatuck Hill Partners also made a $5 million investment in the stock during the quarter. The other funds with brand new SODA positions are Ken Heebner’s Capital Growth Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Richard Driehaus’s Driehaus Capital.

How are insiders trading Sodastream International Ltd (NASDAQ:SODA)?

Insider purchases made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Sodastream International Ltd (NASDAQ:SODA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results shown by our time-tested strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Sodastream International Ltd (NASDAQ:SODA) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!