We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: LMR Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified MRIN as a viable investment and initiated a position in the stock.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Marin Software Inc (NYSE:MRIN) but similarly valued. We will take a look at LMI Aerospace, Inc. (NASDAQ:LMIA), Hutchison China MediTech Ltd – ADR (NASDAQ:HCM), GSI Technology, Inc. (NASDAQ:GSIT), and CorMedix Inc. (NYSEMKT:CRMD). This group of stocks’ market valuations resemble MRIN’s market valuation.
|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 5 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $15 million in MRIN’s case. LMI Aerospace, Inc. (NASDAQ:LMIA) is the most popular stock in this table. On the other hand CorMedix Inc. (NYSEAMEX:CRMD) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Marin Software Inc (NYSE:MRIN) 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.