Did Hedge Funds Drop The Ball On GoPro Inc (GPRO) ?

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Is GoPro Inc (NASDAQ:GPRO) ready to rally soon? Investors who are in the know are selling. The number of long hedge fund positions shrunk by 1 lately. Our calculations also showed that GPRO isn’t among the 30 most popular stocks among hedge funds.

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Dmitry Balyasny

We’re going to take a peek at the recent hedge fund action regarding GoPro Inc (NASDAQ:GPRO).

How are hedge funds trading GoPro Inc (NASDAQ:GPRO)?

At Q4’s end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the previous quarter. The graph below displays the number of hedge funds with bullish position in GPRO over the last 14 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.


More specifically, Renaissance Technologies was the largest shareholder of GoPro Inc (NASDAQ:GPRO), with a stake worth $20.9 million reported as of the end of December. Trailing Renaissance Technologies was Maverick Capital, which amassed a stake valued at $10.8 million. Millennium Management, PDT Partners, and Blue Mountain Capital were also very fond of the stock, giving the stock large weights in their portfolios.

Due to the fact that GoPro Inc (NASDAQ:GPRO) has experienced declining sentiment from hedge fund managers, it’s easy to see that there was a specific group of fund managers who sold off their full holdings last quarter. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP dropped the biggest position of all the hedgies monitored by Insider Monkey, comprising about $16.7 million in call options. Dmitry Balyasny’s fund, Balyasny Asset Management, also sold off its call options, about $1.1 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to GoPro Inc (NASDAQ:GPRO). These stocks are Funko, Inc. (NASDAQ:FNKO), Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Civitas Solutions Inc (NYSE:CIVI), and SIGA Technologies Inc. (NASDAQ:SIGA). This group of stocks’ market caps are closest to GPRO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNKO 13 39529 3
NVMI 9 74480 0
CIVI 15 76552 3
SIGA 10 44299 1
Average 11.75 58715 1.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $48 million in GPRO’s case. Civitas Solutions Inc (NYSE:CIVI) is the most popular stock in this table. On the other hand Nova Measuring Instruments Ltd. (NASDAQ:NVMI) is the least popular one with only 9 bullish hedge fund positions. GoPro Inc (NASDAQ:GPRO) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Hedge funds were also right about betting on GPRO as the stock returned 48.1% and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.