Wall Street is trading lower for the second consecutive day today, but shares of Inventergy Global Inc (NASDAQ:INVT), Dynavax Technologies Corporation (NASDAQ:DVAX), Uniqure NV (NASDAQ:QURE), Zumiez Inc. (NASDAQ:ZUMZ) and J C Penney Company Inc (NYSE:JCP) are trading with big gains. So let’s take a look at the news surrounding these stocks today and see the hedge fund sentiment towards them.
Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 53 percentage points, returning over 102% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.
The first on the list is Inventergy Global Inc (NASDAQ:INVT), whose stock has more than doubled, after the company announced that it reached an agreement with its patent partner Panasonic Corporation. Under the terms of the accord, the guaranteed minimum payments and related accrued interest will be eliminated. In this way, the company has lowered by $17.3 million its liabilities and has eliminated $1.0 million of accrued interest expense (financial data as of December 31). Moreover, reducing the liabilities makes the company avoid $120,000 per month of future interest expense. Future payments will be based on monetization transactions, such as licensing and sales deals. Among the funds we track, Inventergy Global is not very popular with only two funds reporting long positions equal to 1.4% of the company as of the end of September.