Glu Mobile Inc. (GLUU)’s Stock Punished for Lower-Than-Expected Q3 Guidance

How have hedgies been trading Glu Mobile Inc. (NASDAQ:GLUU)?

By the end of March, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, up by one from the fourth quarter of 2014. A more bullish signal for Glu Mobile Inc. (NASDAQ:GLUU), however, is the 108.41% quarterly increase in hedge funds’ holdings to $93.09 million at the end of March. The stock has only appreciated by 28.46% during the first quarter, which means that most of the increase in the aggregate value of holdings is due to hedge funds putting more capital in the stock. They were proven right in the second quarter with a 23.95% jump of the stock.

Anand Parekh’s Alyeska Investment Group had the biggest position in Glu Mobile Inc. (NASDAQ:GLUU) by the end of the first quarter with 3.98 million shares valued at about $19.9 million. D.E. Shaw & Co., L.P. managed by David E. Shaw, which held a $16.7 million position in 3.33 million shares came in second. Joseph A. Jolson’s Harvest Capital Strategies initiated the biggest position in Glu Mobile, which contained 1.55 million shares, while Neil Chriss’ Hutchin Hill Capital also acquired 392,900 shares.

The positive outlook of the world’s preeminent money managers makes us recommend a long position in Glu Mobile Inc. (NASDAQ:GLUU).

Disclosure: None