World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
PROS Holdings, Inc. (NYSE:PRO) has seen an increase in hedge fund interest of late. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Flamel Technologies S.A. (ADR) (NASDAQ:FLML), Intersect ENT Inc (NASDAQ:XENT), and Eastman Kodak Co. (NYSE:KODK) to gather more data points.
In today’s marketplace there are dozens of metrics, market participants have at their disposal to size up their holdings. A couple of the less utilized metrics are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the best money managers can trounce the S&P 500 by a solid amount (see the details here).
With all of this in mind, we’re going to take a look at the new action encompassing PROS Holdings, Inc. (NYSE:PRO).
Hedge fund activity in PROS Holdings, Inc. (NYSE:PRO)
At Q3’s end, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a surge of 25% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Cadian Capital, managed by Eric Bannasch, holds the number one position in PROS Holdings, Inc. (NYSE:PRO), worth an estimated $53.6 million, comprising 1.9% of its 13F portfolio. The second largest stake is held by Dorsal Capital Management, led by Ryan Frick and Oliver Evans, holding a $22.1 million position; 2% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions consist of Bill Miller’s Legg Mason Capital Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.