Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Buy Shares of Covisint Corp (COVS)?

Because Covisint Corp (NASDAQ:COVS) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of money managers that elected to cut their entire stakes by the end of the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group dumped the largest position of the 700 funds tracked by Insider Monkey, totaling close to $0.2 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also said goodbye to its stock, about $0.1 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 4 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Covisint Corp (NASDAQ:COVS) but similarly valued. We will take a look at The McClatchy Company (NYSE:MNI), Tenax Therapeutics Inc (NASDAQ:TENX), KEMET Corporation (NYSE:KEM), and MAM Software Group Inc. (NASDAQ:MAMS). All of these stocks’ market caps are similar to COVS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MNI 10 9041 -3
TENX 9 28863 3
KEM 12 10579 1
MAMS 4 25685 2

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. Among the stocks from the table, KEMET Corporation (NYSE:KEM) is the most popular, with 12 funds reporting stakes. On the other hand MAM Software Group Inc. (NASDAQ:MAMS) is the least popular one with only 4 bullish hedge fund positions. Covisint Corp (NASDAQ:COVS) is not the least popular stock in this group but hedge fund interest is still below average. Moreover, hedge funds have amassed $22 million worth of its stock heading into the fourth quarter. However, we’d rather spend our time researching stocks that hedge funds are piling on and, in this regard, KEM might be a better candidate to consider looking into.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.