Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Ellie Mae Inc (NYSE:ELLI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Ellie Mae Inc (NYSE:ELLI) shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. 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 Kythera Biopharmaceuticals Inc (NASDAQ:KYTH), Masimo Corporation (NASDAQ:MASI), and Kinross Gold Corporation (USA) (NYSE:KGC) to gather more data points.
Today, there are numerous tools stock market investors have at their disposal to analyze stocks. A duo of the most useful tools are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace their index-focused peers by a very impressive amount (see the details here).
Keeping this in mind, we’re going to take a look at the key action encompassing Ellie Mae Inc (NYSE:ELLI).
Hedge fund activity in Ellie Mae Inc (NYSE:ELLI)
At the end of September, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 23% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Alex Sacerdote’s Whale Rock Capital Management has the most valuable position in Ellie Mae Inc (NYSE:ELLI), worth close to $80.9 million, amounting to 8% of its total 13F portfolio. The second most bullish fund manager is Tremblant Capital, managed by Brett Barakett, which holds a $51 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish include Edmond M. Safra’s EMS Capital, Spencer M. Waxman’s Shannon River Fund Management, and Richard Driehaus’s Driehaus Capital.
As aggregate interest increased, some big names were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the largest position in Ellie Mae Inc (NYSE:ELLI). Millennium Management had $7.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.8 million position during the quarter. The following funds were also among the new ELLI investors: Chao Ku’s Nine Chapters Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to Ellie Mae Inc (NYSE:ELLI). These stocks are Kythera Biopharmaceuticals Inc (NASDAQ:KYTH), Masimo Corporation (NASDAQ:MASI), Kinross Gold Corporation (USA) (NYSE:KGC), and Hilltop Holdings Inc. (NYSE:HTH). This group of stocks’ market values is similar to Ellie Mae Inc (NYSE:ELLI)’s market value.
|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 22 hedge funds with bullish positions and the average amount invested in these stocks was $192 million. That figure was $273 million in Ellie Mae Inc (NYSE:ELLI)’s case. Kythera Biopharmaceuticals Inc (NASDAQ:KYTH) is the most popular stock in this table. On the other hand, Hilltop Holdings Inc. (NYSE:HTH) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks, Ellie Mae Inc (NYSE:ELLI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.