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Do Hedge Funds Love Five9 Inc (FIVN)?

World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.

Five9 Inc (NASDAQ:FIVN) was in 7 hedge funds’ portfolios at the end of the third quarter of 2015. Five9 Inc (NASDAQ:FIVN) shareholders have witnessed a decrease in hedge fund sentiment of late. There were 13 hedge funds in our database with Five9 Inc (NASDAQ:FIVN) positions at the end of the previous quarter. The hedge fund activity was quite similar to the stock performance of the company, as it lost 29.25% stock value during the quarter. We will find out more about the hedge funds that had stakes in Five9 Inc (NASDAQ:FIVN) at the end of the last quarter.

At the end of this article, we will also compare Five9 Inc (NASDAQ:FIVN) to other stocks including North Atlantic Drilling Ltd. (NYSE:NADL), New America High Income Fund Inc. (NYSE:HYB), and Cutera, Inc. (NASDAQ:CUTR) to get a better sense of its popularity.

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To most shareholders, hedge funds are viewed as unimportant, outdated investment vehicles of yesteryear. While there are greater than an 8000 funds in operation today, We choose to focus on the bigwigs of this club, about 700 funds. It is estimated that this group of investors oversees the lion’s share of the smart money’s total asset base, and by monitoring their unrivaled equity investments, Insider Monkey has unsheathed numerous investment strategies that have historically outpaced the market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

Keeping this in mind, let’s go over the fresh action regarding Five9 Inc (NASDAQ:FIVN).

How are hedge funds trading Five9 Inc (NASDAQ:FIVN)?

At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decrease of 46% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Portolan Capital Management, managed by George McCabe, holds the largest position in Five9 Inc (NASDAQ:FIVN). Portolan Capital Management has a $5.4 million position in the stock, comprising 0.7% of its 13F portfolio. The second most bullish fund manager is Renaissance Technologies, holding a $1.6 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism comprise Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group, and D. E. Shaw’s D E Shaw.

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