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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.

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