It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 7.6% over the 12-month period ending November 21, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored mid-cap stocks by the best performing hedge funds monitored by Insider Monkey generated a return of 18% over the same time span. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in Everbridge Inc (NASDAQ:EVBG).
Is Everbridge Inc (NASDAQ:EVBG) a good investment right now? The stock started trading in September and 13 funds from the Insider Monkey database reported long positions in the company as of the end of the third quarter. At the end of this article we will also compare EVBG to other stocks including Century Communities, Inc (NYSE:CCS), Xactly Corp (NYSE:XTLY), and Collegium Pharmaceutical Inc (NASDAQ:COLL) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Hedge fund activity in Everbridge Inc (NASDAQ:EVBG)
As stated earlier, at the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock. So, let’s find out which hedge funds were among the top holders of the stock.
When looking at the institutional investors followed by Insider Monkey, Matthew A. Weatherbie’s Weatherbie Capital holds the biggest position in Everbridge Inc (NASDAQ:EVBG). Weatherbie Capital has a $6.1 million position in the stock. Coming in second is Bain Capital’s Brookside Capital, with a $3.4 million position. Some other hedge funds and institutional investors that hold long positions contain Seymour Sy Kaufman and Michael Stark’s Crosslink Capital, George Soros’ Soros Fund Management, and Paul Tudor Jones’ Tudor Investment Corp. We should note that Soros Fund Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
On the next page, we are going to take a closer look at how the hedge fund sentiment towards EVBG compares with the one towards four other similarly-valued stocks.