What Do Hedge Funds Think of Barracuda Networks Inc (CUDA)?

Page 2 of 2

Because Barracuda Networks Inc (NYSE:CUDA) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedge funds who were dropping their positions entirely by the end of the third quarter. Interestingly, Richard Driehaus’s Driehaus Capital dumped the largest position of all the hedgies tracked by Insider Monkey, totaling close to $2.9 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dropped about $1.9 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Barracuda Networks Inc (NYSE:CUDA) but similarly valued. We will take a look at Erin Energy Corp (NYSEMKT:ERN), Greenlight Capital Re, Ltd. (NASDAQ:GLRE), Trina Solar Limited (ADR) (NYSE:TSL), and PDL BioPharma Inc. (NASDAQ:PDLI). This group of stocks’ market valuations are similar to CUDA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ERN 5 1718 -2
GLRE 13 47731 -3
TSL 16 256244 -8
PDLI 20 88639 6

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $22 million in CUDA’s case. PDL BioPharma Inc. (NASDAQ:PDLI) is the most popular stock in this table. On the other hand Erin Energy Corp (NYSEMKT:ERN) is the least popular one with only 5 bullish hedge fund positions. Barracuda Networks Inc (NYSE:CUDA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PDLI might be a better candidate to consider a long position.

Page 2 of 2