With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes significantly. When looking at the hedgies followed by Insider Monkey, Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management had the biggest position in XO Group Inc (NYSE:XOXO), worth close to $38.1 million, consisting of 2.16 million shares and accounting for 21.2% of its total 13F portfolio. The second-largest stake is held by Wallace R. Weitz & Co., led by Wallace Weitz, holding a $37.4 million position with ownership of 2.12 million shares; 1% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish contain Jim Simons’ Renaissance Technologies, David Park’s Headlands Capital and David E. Shaw’s D E Shaw.
Because XO Group Inc (NYSE:XOXO) has witnessed declining sentiment from the smart money, we can see that there exists a select few hedgies that elected to cut their positions entirely at the end of the first quarter. It’s worth mentioning that Brett Hendrickson‘s Nokomis Capital dumped the biggest position of the “upper crust” of funds tracked by Insider Monkey, totaling an estimated $1.4 million in stock. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s fund, GRT Capital Partners, also sold off its position, about $0.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest declined slightly during the first quarter.
Insider purchases are among the strongest signals indicating growth in share prices in the future, and XO Group Inc has had three such purchases in the last six months. Even though hedge fund sentiment was slightly negative, 16 hedge funds with positions in a $400 million market cap stock is nonetheless a positive indicator. Given the recent positive news on top of that, we recommend a buy for the shares of XO Group.