Between June 25 and October 30th the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Tangoe Inc (NASDAQ:TNGO) and see how the stock is affected by the recent hedge fund activity.
Is Tangoe Inc (NASDAQ:TNGO) a great investment today? The smart money is becoming hopeful. The number of bullish hedge fund positions inched up by 2 recently. TNGO was in 12 hedge funds’ portfolios at the end of the third quarter of 2015. There were 10 hedge funds in our database with TNGO positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as SurModics, Inc. (NASDAQ:SRDX), Fortuna Silver Mines Inc. (NYSE:FSM), and EndoChoice Holdings Inc (NYSE:GI) to gather more data points.
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Today there are numerous formulas shareholders employ to value stocks. Some of the less known formulas are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the market by a solid margin (see the details here).
Keeping this in mind, we’re going to take a gander at the recent action surrounding Tangoe Inc (NASDAQ:TNGO).
How are hedge funds trading Tangoe Inc (NASDAQ:TNGO)?
Of the funds tracked by Insider Monkey, George McCabe’s Portolan Capital Management has the number one position in Tangoe Inc (NASDAQ:TNGO), worth close to $6 million, comprising 0.8% of its total 13F portfolio. Sitting at the No. 2 spot is Selz Capital, managed by Bernard Selz, which holds a $3.2 million position; 0.9% of its 13F portfolio is allocated to the stock. Other peers that hold long positions consist of Jeffrey Jacobowitz’s Simcoe Capital Management, Chuck Royce’s Royce & Associates and Jim Simons’ Renaissance Technologies.
As one would reasonably expect, key money managers were leading the bulls’ herd. Simcoe Capital Management, managed by Jeffrey Jacobowitz, established the most outsized position in Tangoe Inc (NASDAQ:TNGO). Simcoe Capital Management had $3.2 million invested in the company at the end of the quarter. Ahmet Okumus’s Okumus Fund Management also made a $1.4 million investment in the stock during the quarter. The only other fund with a new position in the stock is Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s check out hedge fund activity in other stocks similar to Tangoe Inc (NASDAQ:TNGO). We will take a look at SurModics, Inc. (NASDAQ:SRDX), Fortuna Silver Mines Inc. (NYSE:FSM), EndoChoice Holdings Inc (NYSE:GI), and America’s Car-Mart, Inc. (NASDAQ:CRMT). This group of stocks’ market values are similar to TNGO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SRDX | 15 | 46867 | 0 |
| FSM | 10 | 12012 | 1 |
| GI | 9 | 46237 | -2 |
| CRMT | 9 | 62264 | 0 |
As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $21 million in TNGO’s case. SurModics, Inc. (NASDAQ:SRDX) is the most popular stock in this table. On the other hand EndoChoice Holdings Inc (NYSE:GI) is the least popular one with only 9 bullish hedge fund positions. Tangoe Inc (NASDAQ:TNGO) 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 SRDX might be a better candidate to consider a long position.
