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Did Hedge Funds Drop The Ball On Cyberark Software Ltd (CYBR)?

Nina Todic

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of December 31st. In this article we look at what those investors think of Cyberark Software Ltd (NASDAQ:CYBR).

Cyberark Software Ltd (NASDAQ:CYBR) has experienced a decrease in enthusiasm from smart money in recent months. Our calculations also showed that cybr isn't among the 30 most popular stocks among hedge funds.

In the 21st century investor’s toolkit there are a multitude of gauges market participants can use to analyze stocks. A couple of the most underrated gauges are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the best money managers can outclass their index-focused peers by a healthy margin (see the details here).

Ken Griffin CITADEL INVESTMENT GROUP

Let's take a look at the recent hedge fund action surrounding Cyberark Software Ltd (NASDAQ:CYBR).

Hedge fund activity in Cyberark Software Ltd (NASDAQ:CYBR)

At Q4's end, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of -17% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CYBR over the last 14 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds With CYBR Positions

Among these funds, RGM Capital held the most valuable stake in Cyberark Software Ltd (NASDAQ:CYBR), which was worth $70.8 million at the end of the third quarter. On the second spot was Arrowstreet Capital which amassed $52.5 million worth of shares. Moreover, Two Sigma Advisors, Citadel Investment Group, and Point72 Asset Management were also bullish on Cyberark Software Ltd (NASDAQ:CYBR), allocating a large percentage of their portfolios to this stock.

Judging by the fact that Cyberark Software Ltd (NASDAQ:CYBR) has faced bearish sentiment from the entirety of the hedge funds we track, it's safe to say that there was a specific group of hedge funds that slashed their full holdings last quarter. Interestingly, Ricky Sandler's Eminence Capital cut the largest investment of the "upper crust" of funds monitored by Insider Monkey, totaling close to $67.6 million in stock. Anand Parekh's fund, Alyeska Investment Group, also sold off its stock, about $33.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds last quarter.

Let's now take a look at hedge fund activity in other stocks similar to Cyberark Software Ltd (NASDAQ:CYBR). These stocks are Exponent, Inc. (NASDAQ:EXPO), Core Laboratories N.V. (NYSE:CLB), Liberty Latin America Ltd. (NASDAQ:LILAK), and Ascendis Pharma A/S (NASDAQ:ASND). This group of stocks' market values are similar to CYBR's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EXPO,16,115214,4 CLB,15,217088,1 LILAK,19,322082,0 ASND,26,1358060,-1 Average,19,503111,1 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $503 million. That figure was $272 million in CYBR's case. Ascendis Pharma A/S (NASDAQ:ASND) is the most popular stock in this table. On the other hand Core Laboratories N.V. (NYSE:CLB) is the least popular one with only 15 bullish hedge fund positions. Cyberark Software Ltd (NASDAQ:CYBR) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Hedge funds were also right about betting on CYBR as the stock returned 64.4% and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.

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