Brightcove Inc (NASDAQ:BCOV) was in 7 hedge funds’ portfolio at the end of the fourth quarter of 2012. BCOV has experienced a decrease in hedge fund sentiment recently. There were 8 hedge funds in our database with BCOV holdings at the end of the previous quarter.
If you’d ask most market participants, hedge funds are seen as underperforming, outdated investment vehicles of years past. While there are more than 8000 funds trading at present, we at Insider Monkey hone in on the upper echelon of this group, around 450 funds. It is estimated that this group has its hands on most of all hedge funds’ total asset base, and by paying attention to their highest performing equity investments, we have uncovered a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as important, optimistic insider trading sentiment is another way to break down the stock market universe. There are lots of stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the key action surrounding Brightcove Inc (NASDAQ:BCOV).
Hedge fund activity in Brightcove Inc (NASDAQ:BCOV)
Heading into 2013, a total of 7 of the hedge funds we track held long positions in this stock, a change of -13% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
Of the funds we track, Brookside Capital, managed by Bain Capital, holds the most valuable position in Brightcove Inc (NASDAQ:BCOV). Brookside Capital has a $4.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Maverick Capital, managed by Lee Ainslie, which held a $4.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Michael Novogratz’s Fortress Investment Group, Anand Parekh’s Alyeska Investment Group and Israel Englander’s Millennium Management.
Due to the fact that Brightcove Inc (NASDAQ:BCOV) has faced falling interest from the smart money, we can see that there was a specific group of fund managers who sold off their entire stakes in Q4. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management dumped the largest position of the “upper crust” of funds we watch, totaling close to $6 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also dropped its stock, about $0.2 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds in Q4.
How have insiders been trading Brightcove Inc (NASDAQ:BCOV)?
Insider buying is best served when the company in question has seen transactions within the past half-year. Over the last six-month time frame, Brightcove Inc (NASDAQ:BCOV) has experienced 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Brightcove Inc (NASDAQ:BCOV). These stocks are ARC Document Solutions Inc (NYSE:ARC), QAD Inc. (NASDAQ:QADA), Unwired Planet Inc (NASDAQ:UPIP), Pervasive Software Inc. (NASDAQ:PVSW), and Magic Software Enterprises Ltd. (NASDAQ:MGIC). This group of stocks are in the application software industry and their market caps are similar to BCOV’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| ARC Document Solutions Inc (NYSE:ARC) | 10 | 4 | 1 |
| QAD Inc. (NASDAQ:QADA) | 3 | 0 | 2 |
| Unwired Planet Inc (NASDAQ:UPIP) | 12 | 0 | 0 |
| Pervasive Software Inc. (NASDAQ:PVSW) | 9 | 0 | 0 |
| Magic Software Enterprises Ltd. (NASDAQ:MGIC) | 4 | 0 | 0 |
With the results shown by Insider Monkey’s research, everyday investors must always monitor hedge fund and insider trading activity, and Brightcove Inc (NASDAQ:BCOV) applies perfectly to this mantra.
