Do Hedge Funds Love Five9 Inc (FIVN)?

Due to the fact that Five9 Inc (NASDAQ:FIVN) has faced a declination in interest from hedge fund managers, it’s safe to say that there were a few funds who sold off their full holdings in the third quarter. At the top of the heap, Brad Gerstner’s Altimeter Capital Management said goodbye to the biggest investment of all the hedgies monitored by Insider Monkey, comprising close to $3.1 million in stock, and Josh Goldberg’s G2 Investment Partners Management was right behind this move, as the fund cut about $1.4 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 6 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Five9 Inc (NASDAQ:FIVN). These stocks are North Atlantic Drilling Ltd. (NYSE:NADL), New America High Income Fund Inc. (NYSE:HYB), Cutera, Inc. (NASDAQ:CUTR), and Garnero Group Acquisition Co (NASDAQ:GGAC). This group of stocks’ market values are similar to Five9 Inc (NASDAQ:FIVN)’s market value.

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $10 million in Five9 Inc (NASDAQ:FIVN)’s case. Cutera, Inc. (NASDAQ:CUTR) is the most popular stock in this table. On the other hand, North Atlantic Drilling Ltd. (NYSE:NADL) is the least popular one with only 4 bullish hedge fund positions. Five9 Inc (NASDAQ:FIVN) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Cutera, Inc. (NASDAQ:CUTR) might be a better candidate to consider a long position.