The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards BigCommerce Holdings, Inc. (NASDAQ:BIGC).
Is BIGC a good stock to buy now? The smart money was taking an optimistic view. The number of long hedge fund bets inched up by 18 recently. BigCommerce Holdings, Inc. (NASDAQ:BIGC) was in 18 hedge funds’ portfolios at the end of September. Our calculations also showed that BIGC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To the average investor there are a large number of indicators market participants put to use to appraise stocks. Some of the best indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the elite money managers can beat the market by a solid amount (see the details here).
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Keeping this in mind let’s go over the key hedge fund action regarding BigCommerce Holdings, Inc. (NASDAQ:BIGC).
Do Hedge Funds Think BIGC Is A Good Stock To Buy Now?
At the end of September, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18 from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards BIGC over the last 21 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in BigCommerce Holdings, Inc. (NASDAQ:BIGC) was held by Matrix Capital Management, which reported holding $191.9 million worth of stock at the end of September. It was followed by Tiger Global Management LLC with a $112.5 million position. Other investors bullish on the company included Citadel Investment Group, PEAK6 Capital Management, and Alyeska Investment Group. In terms of the portfolio weights assigned to each position Kamunting Street Capital allocated the biggest weight to BigCommerce Holdings, Inc. (NASDAQ:BIGC), around 2.61% of its 13F portfolio. Matrix Capital Management is also relatively very bullish on the stock, designating 2.55 percent of its 13F equity portfolio to BIGC.
Now, key hedge funds were leading the bulls’ herd. Matrix Capital Management, managed by David Goel and Paul Ferri, initiated the biggest position in BigCommerce Holdings, Inc. (NASDAQ:BIGC). Matrix Capital Management had $191.9 million invested in the company at the end of the quarter. Chase Coleman’s Tiger Global Management LLC also initiated a $112.5 million position during the quarter. The other funds with new positions in the stock are Anand Parekh’s Alyeska Investment Group, Jonathan Barrett and Paul Segal’s Luminus Management, and Josh Goldberg’s G2 Investment Partners Management.
Let’s check out hedge fund activity in other stocks similar to BigCommerce Holdings, Inc. (NASDAQ:BIGC). These stocks are TIM Participacoes SA (NYSE:TSU), Flex Ltd. (NASDAQ:FLEX), Santander Consumer USA Holdings Inc (NYSE:SC), AGCO Corporation (NYSE:AGCO), Hill-Rom Holdings, Inc. (NYSE:HRC), Federal Realty Investment Trust (NYSE:FRT), and Syneos Health, Inc. (NASDAQ:SYNH). This group of stocks’ market values match BIGC’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.6 hedge funds with bullish positions and the average amount invested in these stocks was $393 million. That figure was $357 million in BIGC’s case. Syneos Health, Inc. (NASDAQ:SYNH) is the most popular stock in this table. On the other hand TIM Participacoes SA (NYSE:TSU) is the least popular one with only 13 bullish hedge fund positions. BigCommerce Holdings, Inc. (NASDAQ:BIGC) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BIGC is 24.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through December 14th and surpassed the market again by 15.8 percentage points. Unfortunately BIGC wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); BIGC investors were disappointed as the stock returned -13.6% since the end of September (through 12/14) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Disclosure: None. This article was originally published at Insider Monkey.