Bats Global Markets Inc (BATS): Are Hedge Funds Right About This Stock?

Since Bats Global Markets Inc (BATS:BATS) has gone through bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of funds that slashed their positions entirely by the end of the third quarter. At the top of the heap, Panayotis Takis Sparaggis’ Alkeon Capital Management dropped the biggest investment of the “upper crust” of funds followed by Insider Monkey, totaling about $12.9 million in stock, and Principal Global Investors’ Columbus Circle Investors was right behind this move, as the fund sold off about $11.5 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Bats Global Markets Inc (BATS:BATS) but similarly valued. These stocks are LivaNova PLC(NASDAQ:LIVN), Associated Banc Corp (NYSE:ASB), Valero Energy Partners LP (NYSE:VLP), and Exelixis, Inc. (NASDAQ:EXEL). This group of stocks’ market valuations resemble BATS’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $260 million. That figure was $106 million in BATS’s case. Exelixis, Inc. (NASDAQ:EXEL) is the most popular stock in this table. On the other hand Valero Energy Partners LP (NYSE:VLP) is the least popular one with only three funds holding shares. Bats Global Markets Inc (BATS:BATS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Exelixis, Inc. (NASDAQ:EXEL) might be a better candidate to consider taking a long position in.

Disclosure: none