What Do Hedge Funds Think of TechTarget Inc (TTGT)?

While the market driven by short-term sentiment influenced by uncertainty regarding the future of the interest rate environment in the US, the low commodity prices and the economic turmoil in China, many smart money investors are keeping their optimism regarding the current bull run, while still hedging many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding TechTarget Inc (NASDAQ:TTGT).

TechTarget Inc (NASDAQ:TTGT) investors should pay attention to an increase in support from the world’s most elite money managers recently. TTGT was in 16 hedge funds’ portfolios at the end of September. There were 15 hedge funds in our database with TTGT 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 Pacific Biosciences of California (NASDAQ:PACB), Ameresco Inc (NYSE:AMRC), and CTC Media, Inc. (NASDAQ:CTCM) to gather more data points.

In the eyes of most traders, hedge funds are viewed as worthless, old investment vehicles of the past. While there are more than 8000 funds with their doors open today, Our experts choose to focus on the leaders of this group, around 700 funds. These hedge fund managers administer most of the smart money’s total asset base, and by paying attention to their finest investments, Insider Monkey has unsheathed a few investment strategies that have historically exceeded the market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points per year for a decade in their back tests.

With all of this in mind, we’re going to take a look at the fresh action encompassing TechTarget Inc (NASDAQ:TTGT).

What have hedge funds been doing with TechTarget Inc (NASDAQ:TTGT)?

Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 7% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Amy Minella’s Cardinal Capital has the biggest position in TechTarget Inc (NASDAQ:TTGT), worth close to $11.6 million, accounting for 0.7% of its total 13F portfolio. Coming in second is Trigran Investments, led by Douglas T. Granat, holding a $10.5 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions contain Jeffrey Jacobowitz’s Simcoe Capital Management, Michael Murphy and Daniel Donoghue’s Discovery Group and George McCabe’s Portolan Capital Management.

Now, some big names have jumped into TechTarget Inc (NASDAQ:TTGT) headfirst. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the biggest position in TechTarget Inc (NASDAQ:TTGT). Highbridge Capital Management had $0.1 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital also initiated a small stake during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to TechTarget Inc (NASDAQ:TTGT). These stocks are Pacific Biosciences of California (NASDAQ:PACB), Ameresco Inc (NYSE:AMRC), CTC Media, Inc. (NASDAQ:CTCM), and Heritage Oaks Bancorp (NASDAQ:HEOP). This group of stocks’ market valuations match TTGT’s market valuation.

As you can see these stocks had an average of 7.25 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $57 million in TTGT’s case. Pacific Biosciences of California (NASDAQ:PACB) is the most popular stock in this table. On the other hand Heritage Oaks Bancorp (NASDAQ:HEOP) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks TechTarget Inc (NASDAQ:TTGT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.