Many investors, including Carl Icahn or Stan Druckenmiller, have been saying for a while now that the current market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the third quarter, many investors lost money due to unpredictable events such as the concerns over Valeant’s drug pricing policy that led to an overall drop among pharma stocks. Nevertheless, many of the stocks that tanked in the third quarter still sport strong fundamentals and their decline was more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to AVG Technologies NV (NYSE:AVG) changed recently.
AVG Technologies NV (NYSE:AVG) investors should pay attention to a decrease in support from the world’s most elite money managers lately. AVG was in 20 hedge funds’ portfolios at the end of the third quarter of 2015. There were 22 hedge funds in our database with AVG positions at the end of the previous quarter. At the end of this article we will also compare AVG to other stocks including Acorda Therapeutics Inc (NASDAQ:ACOR), CYS Investments Inc (NYSE:CYS), and Government Properties Income Trust (NYSE:GOV) to get a better sense of its popularity.
Keeping this in mind, let’s take a look at the fresh action surrounding AVG Technologies NV (NYSE:AVG).
How have hedgies been trading AVG Technologies NV (NYSE:AVG)?
Heading into Q4, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Trigran Investments, managed by Douglas T. Granat, holds the number one position in AVG Technologies NV (NYSE:AVG). Trigran Investments has a $22.6 million position in the stock, comprising 7.1% of its 13F portfolio. On Trigran Investments’s heels D E Shaw, with a $12.8 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions include Robert B. Gillam’s McKinley Capital Management, Bill Miller’s Legg Mason Capital Management and George McCabe’s Portolan Capital Management.