Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Inteliquent (NASDAQ:IQNT).
Inteliquent (NASDAQ:IQNT) investors should pay attention to an increase in support from the world’s most elite money managers recently. IQNT was in 17 hedge funds’ portfolios at the end of September. There were 14 hedge funds in our database with IQNT positions at the end of the previous quarter. At the end of this article we will also compare IQNT to other stocks including MaxLinear, Inc. (NYSE:MXL), Quotient Technology Inc (NYSE:COUP), and Heartland Financial USA Inc (NASDAQ:HTLF) to get a better sense of its popularity.
To the average investor, there are numerous indicators investors have at their disposal to appraise publicly traded companies. A duo of the most underrated indicators are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace their index-focused peers by a significant amount (see the details here).
With all of this in mind, let’s go over the latest action encompassing Inteliquent (NASDAQ:IQNT).
Hedge fund activity in Inteliquent (NASDAQ:IQNT)
At the Q3’s end, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jim Simons’ Renaissance Technologies has the biggest position in Inteliquent (NASDAQ:IQNT), worth close to $27 million, amounting to 0.1% of its total 13F portfolio. On Renaissance Technologies’s heels is Driehaus Capital, managed by Richard Driehaus, which holds a $8.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions consist of Cliff Asness’s AQR Capital Management and Josh Goldberg’s G2 Investment Partners Management.
Consequently, key money managers were leading the bulls’ herd. Driehaus Capital established the biggest position in Inteliquent (NASDAQ:IQNT). Driehaus Capital had $8.9 million invested in the company at the end of the quarter. Brett Hendrickson’s Nokomis Capital also initiated a $7.3 million position during the quarter. The other funds with new positions in the stock are Scott Fine and Peter Richards’s Empire Capital Management and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s also examine hedge fund activity in other stocks similar to Inteliquent (NASDAQ:IQNT). These stocks are MaxLinear, Inc. (NYSE:MXL), Quotient Technology Inc (NYSE:COUP), Heartland Financial USA Inc (NASDAQ:HTLF), and P.H. Glatfelter Company (NYSE:GLT). This group of stocks’ market caps resemble IQNT’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $58 million, compared $66 million in IQNT’s case. MaxLinear, Inc. (NYSE:MXL) is the most popular stock in this table. On the other hand Quotient Technology Inc (NYSE:COUP) is the least popular one with only 7 bullish hedge fund positions. Inteliquent (NASDAQ:IQNT) 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 MXL might be a better candidate to consider a long position.