Hedge funds are not perfect. They have their bad picks just like everyone else. Micron, a stock hedge funds have loved, lost 50% during the last 12 months ending on October 30. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% in the same time period, vs. a gain of 5.2% for the S&P 500 Index. Because hedge funds have a lot of resources, and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of Brightcove Inc (NASDAQ:BCOV).
Brightcove Inc (NASDAQ:BCOV) shareholders have witnessed a decrease in hedge fund interest recently. At the end of this article, we will also compare BCOV to other stocks including Richmont Mines Inc. (USA) (NYSEAMEX:RIC), Biotie Therapies Oyj (ADR) (NASDAQ:BITI), and New York & Company, Inc. (NYSE:NWY) to get a better sense of its popularity.
In the financial world there are a large number of indicators market participants put to use to evaluate publicly traded companies. A pair of the most useful indicators is composed of hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the elite investment managers can outpace their index-focused peers by a very impressive margin (see the details here).
Keeping this in mind, let’s review the new action surrounding Brightcove Inc (NASDAQ:BCOV).
Hedge fund activity in Brightcove Inc (NASDAQ:BCOV)
At the end of the third quarter, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management has the number one position in Brightcove Inc (NASDAQ:BCOV), worth close to $4.9 million, corresponding to 0.7% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $1.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining professional money managers with similar optimism contain Tom Henwood’s OMT Capital Management, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.