Sodastream International Ltd (SODA): Are Hedge Funds Right About This Stock?

Sodastream International Ltd (NASDAQ:SODA) was in 11 hedge funds’ portfolio at the end of the first quarter of 2013. SODA shareholders have witnessed a decrease in hedge fund sentiment of late. There were 14 hedge funds in our database with SODA holdings at the end of the previous quarter.

At the moment, there are many methods market participants can use to watch Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can beat the market by a superb margin (see just how much).

Equally as important, bullish insider trading activity is a second way to parse down the stock market universe. There are a number of reasons for an executive to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if piggybackers understand where to look (learn more here).

With these “truths” under our belt, let’s take a gander at the recent action surrounding Sodastream International Ltd (NASDAQ:SODA).

What does the smart money think about Sodastream International Ltd (NASDAQ:SODA)?

Heading into Q2, a total of 11 of the hedge funds we track held long positions in this stock, a change of -21% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.

Sodastream International Ltd (NASDAQ:SODA)According to our comprehensive database, Eric Bannasch’s Cadian Capital had the largest position in Sodastream International Ltd (NASDAQ:SODA), worth close to $62.8 million, comprising 1.7% of its total 13F portfolio. Coming in second is Tremblant Capital, managed by Brett Barakett, which held a $58.8 million position; 2.8% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include John Murphy’s Alydar Capital, Drew Cupps’s Cupps Capital Management and Alex Sacerdote ‘s Whale Rock Capital Management.

Judging by the fact that Sodastream International Ltd (NASDAQ:SODA) has witnessed declining sentiment from the entirety of the hedge funds we track, we can see that there were a few money managers who sold off their positions entirely heading into Q2. At the top of the heap, Daniel S. Och’s OZ Management dumped the biggest stake of the “upper crust” of funds we watch, valued at about $6.6 million in stock., and Mark Broach of Manatuck Hill Partners was right behind this move, as the fund sold off about $4.6 million worth. These moves are important to note, as total hedge fund interest was cut by 3 funds heading into Q2.

Insider trading activity in Sodastream International Ltd (NASDAQ:SODA)

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, Sodastream International Ltd (NASDAQ:SODA) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Sodastream International Ltd (NASDAQ:SODA). These stocks are Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE), National Beverage Corp. (NASDAQ:FIZZ), and Cott Corporation (USA) (NYSE:COT). This group of stocks are in the beverages – soft drinks industry and their market caps resemble SODA’s market cap.