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What do Hedge Funds Think of Actua Corp (ACTA)?

At the top of the heap, Peter Muller’s PDT Partners sold off the largest investment of the 700 funds monitored by Insider Monkey, comprising about $0.4 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dropped its stock, about $0.2 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Actua Corp (NASDAQ:ACTA) but similarly valued. We will take a look at Intralinks Holdings Inc (NYSE:IL), Vera Bradley, Inc. (NASDAQ:VRA), Fidelity Southern Corporation (NASDAQ:LION), and Vanda Pharmaceuticals Inc. (NASDAQ:VNDA). This group of stocks’ market values resemble ACTA’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IL 26 125997 2
VRA 15 79421 -1
LION 16 52711 -1
VNDA 23 280983 -2

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $135 million. That figure was $7 million in ACTA’s case. Intralinks Holdings Inc (NYSE:IL) is the most popular stock in this table. On the other hand Vera Bradley, Inc. (NASDAQ:VRA) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Actua Corp (NASDAQ:ACTA) is even less popular than VRA. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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