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Where Do Hedge Funds Stand On BigCommerce Holdings, Inc. (BIGC)?

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The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards BigCommerce Holdings, Inc. (NASDAQ:BIGC).

BigCommerce Holdings, Inc. (NASDAQ:BIGC) shares haven't seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 26 hedge funds' portfolios at the end of March. Our calculations also showed that BIGC isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). 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 H&R Block, Inc. (NYSE:HRB), Atotech Limited (NYSE:ATC), and Goosehead Insurance, Inc. (NASDAQ:GSHD) to gather more data points.

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.

Chase Coleman of Tiger Global

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we're going to go over the latest hedge fund action regarding BigCommerce Holdings, Inc. (NASDAQ:BIGC).

Do Hedge Funds Think BIGC Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2020. On the other hand, there were a total of 0 hedge funds with a bullish position in BIGC a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Matrix Capital Management held the most valuable stake in BigCommerce Holdings, Inc. (NASDAQ:BIGC), which was worth $225.4 million at the end of the fourth quarter. On the second spot was Tiger Global Management LLC which amassed $78 million worth of shares. Echo Street Capital Management, Atreides Management, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Matrix Capital Management allocated the biggest weight to BigCommerce Holdings, Inc. (NASDAQ:BIGC), around 2.6% of its 13F portfolio. Berylson Capital Partners is also relatively very bullish on the stock, setting aside 1.81 percent of its 13F equity portfolio to BIGC.

Seeing as BigCommerce Holdings, Inc. (NASDAQ:BIGC) has experienced falling interest from the entirety of the hedge funds we track, it's safe to say that there were a few hedgies that slashed their positions entirely last quarter. Interestingly, Frank Fu's CaaS Capital sold off the biggest position of the 750 funds monitored by Insider Monkey, worth close to $36 million in stock, and David Fiszel's Honeycomb Asset Management was right behind this move, as the fund dumped about $16 million worth. These transactions are interesting, 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 BigCommerce Holdings, Inc. (NASDAQ:BIGC). We will take a look at H&R Block, Inc. (NYSE:HRB), Atotech Limited (NYSE:ATC), Goosehead Insurance, Inc. (NASDAQ:GSHD), The Brink's Company (NYSE:BCO), Southwest Gas Holdings, Inc. (NYSE:SWX), Colliers International Group Inc (NASDAQ:CIGI), and AllianceBernstein Holding LP (NYSE:AB). This group of stocks' market values are similar to BIGC's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HRB,27,228558,4 ATC,17,69894,17 GSHD,24,162339,3 BCO,24,406832,-2 SWX,23,159735,6 CIGI,14,866464,3 AB,8,40384,-1 Average,19.6,276315,4.3 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 19.6 hedge funds with bullish positions and the average amount invested in these stocks was $276 million. That figure was $505 million in BIGC's case. H&R Block, Inc. (NYSE:HRB) is the most popular stock in this table. On the other hand AllianceBernstein Holding LP (NYSE:AB) is the least popular one with only 8 bullish hedge fund positions. BigCommerce Holdings, Inc. (NASDAQ:BIGC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BIGC is 82.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Hedge funds were also right about betting on BIGC as the stock returned 21.1% since the end of Q1 (through 7/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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