Hedge Funds Are Not Overly Excited About BroadSoft Inc (BSFT)

Seeing as BroadSoft Inc (NASDAQ:BSFT) has witnessed bearish sentiment from hedge fund managers, we can see that there were a few fund managers who sold off their full holdings in the third quarter. Intriguingly, Soros Fund Management sold off the biggest position of all the hedgies tracked by Insider Monkey, valued at about $23.6 million in stock. Michael A. Price and Amos Meron’s fund, Empyrean Capital Partners, also cut its stock, about $5.7 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to BroadSoft Inc (NASDAQ:BSFT). These stocks are Qiwi PLC (NASDAQ:QIWI), United Fire Group, Inc. (NASDAQ:UFCS), CONN’S, Inc. (NASDAQ:CONN), and Heron Therapeutics Inc (NASDAQ:HRTX). This group of stocks’ market valuations match BroadSoft Inc’s market valuation.

As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $259 million. That figure was $104 million in BroadSoft Inc’s case. Heron Therapeutics Inc (NASDAQ:HRTX) is the most popular stock in this table. On the other hand Qiwi PLC (NASDAQ:QIWI) is the least popular one with only 8 bullish hedge fund positions. BroadSoft Inc (NASDAQ:BSFT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Heron Therapeutics Inc might be a better candidate to consider a long position.