With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter. One of these stocks was Boulder Brands Inc (NASDAQ:BDBD).
Boulder Brands Inc (NASDAQ:BDBD) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 17 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Enterprise Financial Services Corp (NASDAQ:EFSC), Cowen Group, Inc. (NASDAQ:COWN), and Tower International Inc (NYSE:TOWR) to gather more data points.
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With all of this in mind, let’s check out the fresh action regarding Boulder Brands Inc (NASDAQ:BDBD).
Hedge fund activity in Boulder Brands Inc (NASDAQ:BDBD)
At the end of Q3, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the number one position in Boulder Brands Inc (NASDAQ:BDBD). Adage Capital Management has a $50 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Glenn W. Welling of Engaged Capital, with an $47.8 million position; 27.4% of its 13F portfolio is allocated to the company. Some other members of the smart money with similar optimism comprise Anand Parekh’s Alyeska Investment Group, Mario Gabelli’s GAMCO Investors, and Michael Barnes and Arif Inayatullah’s Tricadia Capital Management.
Because Boulder Brands Inc (NASDAQ:BDBD) has faced a declining sentiment from hedge fund managers, it’s safe to say that there is a sect of funds who sold off their full holdings in the third quarter. Intriguingly, Jeffrey Smith’s Starboard Value LP sold off the largest position of all the hedgies tracked by Insider Monkey, totaling an estimated $20.6 million in stock. Joseph Mathias’ fund, Concourse Capital Management, also dumped its stock, about $0.8 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks similar to Boulder Brands Inc (NASDAQ:BDBD). These stocks are Enterprise Financial Services Corp (NASDAQ:EFSC), Cowen Group, Inc. (NASDAQ:COWN), Tower International Inc (NYSE:TOWR), and Sagent Pharmaceuticals Inc (NASDAQ:SGNT). This group of stocks’ market caps resembles Boulder Brands Inc (NASDAQ:BDBD)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $190 million in Boulder Brands Inc (NASDAQ:BDBD)’s case. Tower International Inc (NYSE:TOWR) is the most popular stock in this table. On the other hand, Sagent Pharmaceuticals Inc (NASDAQ:SGNT) is the least popular one with only 10 bullish hedge fund positions. Boulder Brands Inc (NASDAQ:BDBD) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Tower International Inc (NYSE:TOWR) might be a better candidate to consider a long position.