On Wednesday, the U.S stock market is trading with mixed results, as investors await news from the Federal Reserve’s latest meeting. In this article, we’ll take a look at some of the stocks that are in the spotlight today, including FXCM Inc (NYSE:FXCM), Capnia Inc (NASDAQ:CAPN), RPC, Inc. (NYSE:RES), Dreamworks Animation Skg Inc (NASDAQ:DWA), and Booz Allen Hamilton Holding Corporation (NYSE:BAH). Aside from the news that affected their moves, we are also going to assess the hedge fund sentiment towards these stocks.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
First up is FXCM Inc (NYSE:FXCM), whose stock is up by 13% after the company amended its stockholder rights plan. The change is intended to protect the interests of the business and its shareholders, and to preserve the value of net operating losses and tax credits. The amendment is in-line with the ones enacted by other firms which faced similar situations.
During the third quarter, FXCM Inc (NYSE:FXCM) registered a decrease in popularity among the funds that we track, with five investors holding long positions at the end of September, versus eight at the end of June. Among them, Kenneth Tropin’s Graham Capital Management was the largest shareholder, reporting ownership of 4.0 million shares in its latest 13F filing.
Next on our list Capnia Inc (NASDAQ:CAPN), the shares of which are up by 17% today after it announced that it has entered into an exclusive distribution agreement with Bemes, Inc., to sell the CoSense® End-Tidal Carbon Monoxide (ETCO) Monitor and Precision Sampling Sets (PSS). Although the financial terms have not been disclosed, the deal will provide Bemes with all rights to the sale of CoSense in the U.S.
Among the funds we track, Capnia Inc (NASDAQ:CAPN) is not popular, with only one fund, Ken Griffin’s Citadel Advisors, reporting a long position equal to 0.1% of the company’s shares as of the end of September.