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.

Were Hedge Funds Right About Betting On SVMK Inc. (SVMK)?

Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of SVMK Inc. (NASDAQ:SVMK).

SVMK Inc. (NASDAQ:SVMK) was in 23 hedge funds’ portfolios at the end of June. SVMK shareholders have witnessed an increase in enthusiasm from smart money in recent months. There were 20 hedge funds in our database with SVMK holdings at the end of the previous quarter. Our calculations also showed that SVMK isn’t among the 30 most popular stocks among hedge funds (see the video below).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

Chase Coleman Tiger Global

Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s take a peek at the recent hedge fund action regarding SVMK Inc. (NASDAQ:SVMK).

Hedge fund activity in SVMK Inc. (NASDAQ:SVMK)

At the end of the second quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the first quarter of 2019. The graph below displays the number of hedge funds with bullish position in SVMK over the last 16 quarters. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

No of Hedge Funds with SVMK Positions

More specifically, Tiger Global Management LLC was the largest shareholder of SVMK Inc. (NASDAQ:SVMK), with a stake worth $224.3 million reported as of the end of March. Trailing Tiger Global Management LLC was Park West Asset Management, which amassed a stake valued at $33 million. Legion Partners Asset Management, ThornTree Capital Partners, and Hunt Lane Capital were also very fond of the stock, giving the stock large weights in their portfolios.

As industrywide interest jumped, specific money managers have jumped into SVMK Inc. (NASDAQ:SVMK) headfirst. Legion Partners Asset Management, managed by Ted White and Christopher Kiper, established the most valuable position in SVMK Inc. (NASDAQ:SVMK). Legion Partners Asset Management had $31.5 million invested in the company at the end of the quarter. Zach Schreiber’s Point State Capital also initiated a $20.6 million position during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Mark N. Diker’s Diker Management, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as SVMK Inc. (NASDAQ:SVMK) but similarly valued. These stocks are JELD-WEN Holding, Inc. (NYSE:JELD), Artisan Partners Asset Management Inc (NYSE:APAM), Trustmark Corporation (NASDAQ:TRMK), and InVitae Corporation (NYSE:NVTA). This group of stocks’ market values resemble SVMK’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JELD 16 366014 -5
APAM 15 202840 -1
TRMK 14 28099 3
NVTA 16 328969 -12
Average 15.25 231481 -3.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $231 million. That figure was $453 million in SVMK’s case. JELD-WEN Holding, Inc. (NYSE:JELD) is the most popular stock in this table. On the other hand Trustmark Corporation (NASDAQ:TRMK) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks SVMK Inc. (NASDAQ:SVMK) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Hedge funds were also right about betting on SVMK, though not to the same extent, as the stock returned 3.6% during the third quarter and outperformed the market as well.

Disclosure: None. This article was originally published at Insider Monkey.

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.