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Here is What Hedge Funds Think About Endurance International Group Holdings Inc (EIGI)

Nina Todic

The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Endurance International Group Holdings Inc (NASDAQ:EIGI).

Endurance International Group Holdings Inc (NASDAQ:EIGI) shares haven't seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 15 hedge funds' portfolios at the end of September. 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 Hercules Technology Growth Capital Inc (NYSE:HTGC), iKang Healthcare Group Inc (NASDAQ:KANG), and Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) to gather more data points.

In the 21st century investor’s toolkit there are a large number of indicators market participants put to use to appraise their holdings. Two of the most under-the-radar indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best investment managers can outperform the S&P 500 by a solid margin (see the details here).

Ahmet Okumus - Okumus Capital
Ahmet Okumus - Okumus Capital

We're going to go over the new hedge fund action surrounding Endurance International Group Holdings Inc (NASDAQ:EIGI).

How are hedge funds trading Endurance International Group Holdings Inc (NASDAQ:EIGI)?

Heading into the fourth quarter of 2018, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, no change from the previous quarter. On the other hand, there were a total of 11 hedge funds with a bullish position in EIGI at the beginning of this year. With hedgies' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).

No of Hedge Funds with EIGI Positions
No of Hedge Funds with EIGI Positions

Among these funds, Okumus Fund Management held the most valuable stake in Endurance International Group Holdings Inc (NASDAQ:EIGI), which was worth $97.4 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $30.2 million worth of shares. Moreover, D E Shaw, Millennium Management, and GLG Partners were also bullish on Endurance International Group Holdings Inc (NASDAQ:EIGI), allocating a large percentage of their portfolios to this stock.

Due to the fact that Endurance International Group Holdings Inc (NASDAQ:EIGI) has experienced falling interest from the aggregate hedge fund industry, it's safe to say that there was a specific group of fund managers who were dropping their entire stakes heading into Q3. It's worth mentioning that Peter Muller's PDT Partners dumped the biggest investment of all the hedgies watched by Insider Monkey, worth close to $1.2 million in stock, and Dmitry Balyasny's Balyasny Asset Management was right behind this move, as the fund dropped about $0.4 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let's check out hedge fund activity in other stocks similar to Endurance International Group Holdings Inc (NASDAQ:EIGI). We will take a look at Hercules Capital, Inc. (NYSE:HTGC), iKang Healthcare Group Inc (NASDAQ:KANG), Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA), and Playa Hotels & Resorts N.V. (NASDAQ:PLYA). All of these stocks' market caps are closest to EIGI's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HTGC,10,19814,0 KANG,13,225754,3 KNSA,9,282489,-5 PLYA,15,485890,-4 Average,11.75,253487,-1.5 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $253 million. That figure was $144 million in EIGI's case. Playa Hotels & Resorts N.V. (NASDAQ:PLYA) is the most popular stock in this table. On the other hand Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) is the least popular one with only 9 bullish hedge fund positions. Endurance International Group Holdings Inc (NASDAQ:EIGI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. In this regard PLYA might be a better candidate to consider a long position.

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

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