The equity market returns were very disappointing in the third quarter, “thanks” to the slowdown of China’s economy and the weaker-than-expected U.S. economic data. It was not entirely clear whether the broader market sell-off made U.S. equity valuations undervalued, but it definitely made them more attractive. It is worth mentioning that Russell 2000 ETF (IWM) underperformed the broad-market S&P 500 ETF by more than 14 percentage points during the period of June 25, 2015 through October 30, 2015. This clearly points to the fact that most investors, including hedge fund firms and institutional investors, heavily cut their exposure to high-potential (but seemingly riskier) small-cap stocks during the bloody third quarter. So let’s take a glance at the smart money sentiment towards PTC Inc (NASDAQ:PTC) and see how it was affected.
Is PTC Inc (NASDAQ:PTC) a good stock to buy now? Investors who are in the know are in an optimistic mood. The number of long hedge fund positions went up by 12 recently. PTC was in 33 hedge funds’ portfolios at the end of the third quarter of 2015. There were 21 hedge funds in our database with PTC holdings at the end of the previous quarter. At the end of this article we will also compare PTC to other stocks including First Niagara Financial Group Inc. (NASDAQ:FNFG), NetScout Systems, Inc. (NASDAQ:NTCT), and CNO Financial Group Inc (NYSE:CNO) to get a better sense of its popularity.
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In the financial world there are numerous metrics shareholders can use to assess stocks. A duo of the most innovative metrics are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a very impressive amount (see the details here).
Keeping this in mind, we’re going to take a look at the key action regarding PTC Inc (NASDAQ:PTC).
Hedge fund activity in PTC Inc (NASDAQ:PTC)
At the end of the third quarter, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 57% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Scott Ferguson’s Sachem Head Capital has the number one position in PTC Inc (NASDAQ:PTC), worth close to $135.2 million, corresponding to 6.1% of its total 13F portfolio. Coming in second is Fir Tree, managed by Jeffrey Tannenbaum, which holds a $123.9 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism encompass Ricky Sandler’s Eminence Capital, Douglas Dossey and Arthur Young’s Tensile Capital and John Brennan’s Sirios Capital Management.