Sodastream International Ltd (NASDAQ:SODA) was in 11 hedge funds’ portfolio at the end of the first quarter of 2013. SODA investors should be aware of a decrease in hedge fund interest of late. There were 14 hedge funds in our database with SODA positions at the end of the previous quarter.
If you’d ask most investors, hedge funds are viewed as unimportant, outdated investment tools of the past. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey choose to focus on the aristocrats of this group, close to 450 funds. It is widely believed that this group oversees the majority of all hedge funds’ total capital, and by monitoring their best stock picks, we have discovered a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum 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 23.3 percentage points in 8 months (see all of our picks from August).
Equally as integral, optimistic insider trading sentiment is a second way to parse down the world of equities. Obviously, there are lots of motivations for an executive to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this method if piggybackers understand what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the recent action regarding Sodastream International Ltd (NASDAQ:SODA).
How are hedge funds trading Sodastream International Ltd (NASDAQ:SODA)?
Heading into Q2, a total of 11 of the hedge funds we track were bullish in this stock, a change of -21% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Cadian Capital, managed by Eric Bannasch, holds the biggest position in Sodastream International Ltd (NASDAQ:SODA). Cadian Capital has a $62.8 million position in the stock, comprising 1.7% of its 13F portfolio. On Cadian Capital’s heels is Brett Barakett of Tremblant Capital, with a $58.8 million position; 2.8% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include John Murphy’s Alydar Capital, Drew Cupps’s Cupps Capital Management and Alex Sacerdote ‘s Whale Rock Capital Management.
Due to the fact that Sodastream International Ltd (NASDAQ:SODA) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of hedgies that decided to sell off their positions entirely heading into Q2. Intriguingly, Daniel S. Och’s OZ Management cut the largest position of the 450+ funds we monitor, valued at an estimated $6.6 million in stock.. Mark Broach’s fund, Manatuck Hill Partners, also dropped its stock, about $4.6 million worth. These moves are important to note, as total hedge fund interest dropped by 3 funds heading into Q2.
What have insiders been doing with Sodastream International Ltd (NASDAQ:SODA)?
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time frame, Sodastream International Ltd (NASDAQ:SODA) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results exhibited by Insider Monkey’s research, retail investors must always watch hedge fund and insider trading sentiment, and Sodastream International Ltd (NASDAQ:SODA) applies perfectly to this mantra.