Intelligent Systems (INS) Has Fallen 21% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Long Cast Advisers top stock picks. Long Cast Advisers, an investment management firm, is bullish on Intelligent Systems Corp (NYSE:INS) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Intelligent Systems Corp (NYSE:INS) stock. Intelligent Systems Corp (NYSE:INS) is a software company.

In July 2019, Long Cast Advisers had released its Q2 2019 investor letter. The investment firm said that Intelligent Systems Corp (NYSE:INS) stock was the largest detractor to Q2 2019 returns. Intelligent Systems Corp (NYSE:INS) stock has posted a return of -20.7% in the trailing one year period, underperforming the S&P 500 Index which returned 12.0% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Intelligent Systems Corp (NYSE:INS) stock has fallen by 5.6%.

In Q2 2019 investor letter, Long Cast Advisers said the fund posted a return of 1.0% in the second quarter of 2019, underperforming fund’s benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Long Cast Advisers about Intelligent Systems Corp (NYSE:INS) stock in the Q2 2019 investor letter.

“Getting back to INS, it presented some challenges and stresses in the quarter that made me reflect on the friction between the principles of a long-term investor rubbing up against a stock that moves far and fast.

We started acquiring INS ~$8. It went to $49. I generally like to make as few decisions as possible, but in that brief period one seemed thrust on me. Do I hold? Or sell? And if so, how much? Turning this over in my mind, I found a brilliant quote by John Neff: “When you feel like bragging about a stock, it’s probably time to sell.” That is a good and easy rubric to follow but on 2nd level thinking, nobody brags about selling a business below its intrinsic value.

Then the shorts came out and the stock was knocked down to ~$25. That ~50% decline in a top holding was demoralizing and called for some reflection. There are times to be a rock sturdy and unchanging, times to be a deeply rooted tree whose branches go with the breeze and times to be a tumbleweed voiced over by Sam Elliott. But under any circumstance, I am hard pressed to find a better industry than payment processing and a better business than one like this on the cusp of accelerating and sustainable growth. We used the sell off to buy more.”

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In Q1 2020, the number of bullish hedge fund positions on Intelligent Systems Corp (NYSE:INS) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Intelligent Systems Corp (NYSE:INS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.