Do Hedge Funds Love Crexendo, Inc. (CXDO)?

We at Insider Monkey have gone over 817 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Crexendo, Inc. (NASDAQ:CXDO) based on that data.

Is Crexendo, Inc. (NASDAQ:CXDO) a bargain? Prominent investors were betting on the stock. The number of bullish hedge fund bets inched up by 4 lately. Crexendo, Inc. (NASDAQ:CXDO) was in 4 hedge funds’ portfolios at the end of the third quarter of 2020. Our calculations also showed that CXDO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

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Gavin Saitowitz of Prelude Capital

Gavin Saitowitz of Prelude Capital

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How have hedgies been trading Crexendo, Inc. (NASDAQ:CXDO)?

At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4 from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in CXDO over the last 21 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

When looking at the institutional investors followed by Insider Monkey, Israel Englander’s Millennium Management has the largest position in Crexendo, Inc. (NASDAQ:CXDO), worth close to $0.4 million, amounting to less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Hound Partners, led by Jonathan Auerbach, holding a $0.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that are bullish contain Renaissance Technologies, Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) and . In terms of the portfolio weights assigned to each position Hound Partners allocated the biggest weight to Crexendo, Inc. (NASDAQ:CXDO), around 0.02% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, designating 0.0005 percent of its 13F equity portfolio to CXDO.

As one would reasonably expect, key hedge funds were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the most valuable position in Crexendo, Inc. (NASDAQ:CXDO). Millennium Management had $0.4 million invested in the company at the end of the quarter. Jonathan Auerbach’s Hound Partners also made a $0.3 million investment in the stock during the quarter. The other funds with brand new CXDO positions are Renaissance Technologies and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).

Let’s check out hedge fund activity in other stocks similar to Crexendo, Inc. (NASDAQ:CXDO). These stocks are Catalyst Biosciences Inc (NASDAQ:CBIO), Marchex, Inc. (NASDAQ:MCHX), Greenlane Holdings, Inc. (NASDAQ:GNLN), On Deck Capital Inc (NYSE:ONDK), Oak Valley Bancorp (NASDAQ:OVLY), Westwood Holdings Group, Inc. (NYSE:WHG), and Bionano Genomics, Inc. (NASDAQ:BNGO). This group of stocks’ market valuations are closest to CXDO’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBIO 16 30921 -2
MCHX 10 21483 -2
GNLN 4 2272 0
ONDK 13 24345 -3
OVLY 1 161 0
WHG 7 16823 -1
BNGO 2 202 -1
Average 7.6 13744 -1.3

View table here if you experience formatting issues.

As you can see these stocks had an average of 7.6 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $1 million in CXDO’s case. Catalyst Biosciences Inc (NASDAQ:CBIO) is the most popular stock in this table. On the other hand Oak Valley Bancorp (NASDAQ:OVLY) is the least popular one with only 1 bullish hedge fund positions. Crexendo, Inc. (NASDAQ:CXDO) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CXDO is 25. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on CXDO as the stock returned 11.1% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.

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