Should You Buy NetSuite Inc (N) Following Its Major Leadership Change?

Hedge fund activity in NetSuite Inc (NYSE:N)

Of the hedge funds tracked by Insider Monkey, Criterion Capital, managed by Christopher Lord, holds the most valuable position in NetSuite Inc (NYSE:N). Criterion Capital had around 970,000 shares valued at $89.9 million, comprising 3.6% of its 13F portfolio at the end of March. On Criterion Capital’s heels is Balyasny Asset Management, managed by Dmitry Balyasny, which holds around 209,000 shares worth $19.5 million; 0.2% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Israel Englander‘s Millennium Management, Drew Cupps’ Cupps Capital Management, and Nick Niell’s Arrowgrass Capital Partners.

Even though the number of hedge funds with positions in the stock was reduced by one in the first quarter, the overall investment by these hedge funds increased. This shows that some hedge fund managers strengthened their position in the stock significantly, whereas a few others opted to walk away from the stock.  It’s worth mentioning that Phil Frohlich’s Prescott Group Capital Management dropped the biggest stake of all the hedgies followed by Insider Monkey, as the hedge fund sold around 23,000 shares in the first quarter. On the contrary, Criterion Capital, Balyasny Asset Management, and Millennium Management each bought more than 100,000 shares during the first three months of this year.

Despite a 15% drop in the stock value during the first quarter, the stock has stabilized around the $95 mark since. The first major jump since March 31 happened on Friday, as the stock jumped by more than 10%.  Hedge funds were bullish on the stock during the first three months and that has since paid off. Considering the fact that hedge fund managers like Israel Englander opted to strengthen their position in the stock, we recommend buying this stock at the moment, even in light of the turnover in the company’s upper managerial ranks.

Disclosure: None