Sodastream International Ltd (NASDAQ:SODA) has seen an increase in hedge fund interest in recent months.
In the eyes of most traders, hedge funds are assumed to be worthless, outdated investment tools of the past. While there are over 8000 funds trading today, we hone in on the moguls of this group, close to 450 funds. It is estimated that this group controls the lion’s share of the smart money’s total capital, and by paying attention to their top investments, we have unearthed a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as key, optimistic insider trading sentiment is a second way to parse down the marketplace. Obviously, there are many stimuli for an insider to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).
Now, it’s important to take a look at the latest action surrounding Sodastream International Ltd (NASDAQ:SODA).
What does the smart money think about Sodastream International Ltd (NASDAQ:SODA)?
Heading into 2013, a total of 12 of the hedge funds we track were long in this stock, a change of 33% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.
Of the funds we track, Tremblant Capital, managed by Brett Barakett, holds the largest position in Sodastream International Ltd (NASDAQ:SODA). Tremblant Capital has a $65.3 million position in the stock, comprising 3% of its 13F portfolio. Sitting at the No. 2 spot is Cadian Capital, managed by Eric Bannasch, which held a $60.9 million position; the fund has 2% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include John Murphy’s Alydar Capital, D. E. Shaw’s D E Shaw and Drew Cupps’s Cupps Capital Management.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Cupps Capital Management, managed by Drew Cupps, established the most outsized position in Sodastream International Ltd (NASDAQ:SODA). Cupps Capital Management had 12.9 million invested in the company at the end of the quarter. Mark Broach’s Manatuck Hill Partners also made a $4.6 million investment in the stock during the quarter. The other funds with brand new SODA positions are Ken Heebner’s Capital Growth Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Richard Driehaus’s Driehaus Capital.
What do corporate executives and insiders think about Sodastream International Ltd (NASDAQ:SODA)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time frame, Sodastream International Ltd (NASDAQ:SODA) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s check out 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). All of these stocks are in the beverages – soft drinks industry and their market caps match SODA’s market cap.
|Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE)||3||0||0|
|National Beverage Corp. (NASDAQ:FIZZ)||2||1||0|
|Cott Corporation (USA) (NYSE:COT)||10||0||7|
With the results exhibited by our strategies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Sodastream International Ltd (NASDAQ:SODA) shareholders fit into this picture quite nicely.
See the “lucky” 7 on the following pages: