Hedge Funds Never Been This Bullish On Glu Mobile Inc. (GLUU)

(NASDAQ:CYTK), Avanos Medical (NYSE:AVNS), Aurora Cannabis Inc. (NASDAQ:ACB), Silk Road Medical, Inc. (NASDAQ:SILK), and Renasant …
Is GLUU A Good Stock To Buy?Is GLUU A Good Stock To Buy?Is GLUU A Good Stock To Buy?

Is GLUU A Good Stock To Buy?

Among these funds, Shelter Haven Capital Management held the most valuable stake in Glu Mobile Inc. (NASDAQ:GLUU), which was worth $30.6 million at the end of the third quarter. On the second spot was Greenhouse Funds which amassed $27 million worth of shares. Arrowstreet Capital, Scopus Asset Management, and Renaissance Technologies 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 Shelter Haven Capital Management allocated the biggest weight to Glu Mobile Inc. (NASDAQ:GLUU), around 11.7% of its 13F portfolio. Greenhouse Funds is also relatively very bullish on the stock, designating 4.04 percent of its 13F equity portfolio to GLUU.

As industrywide interest jumped, some big names were leading the bulls’ herd. Shelter Haven Capital Management, managed by Jerry Kochanski, initiated the biggest position in Glu Mobile Inc. (NASDAQ:GLUU). Shelter Haven Capital Management had $30.6 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $20.9 million investment in the stock during the quarter. The other funds with brand new GLUU positions are Anand Parekh’s Alyeska Investment Group, Israel Englander’s Millennium Management, and Richard Driehaus’s Driehaus Capital.

Let’s check out hedge fund activity in other stocks similar to Glu Mobile Inc. (NASDAQ:GLUU). These stocks are O-I Glass, Inc. (NYSE:OI), Sapiens International Corporation N.V. (NASDAQ:SPNS), Cytokinetics, Inc. (NASDAQ:CYTK), Avanos Medical (NYSE:AVNS), Aurora Cannabis Inc. (NASDAQ:ACB), Silk Road Medical, Inc. (NASDAQ:SILK), and Renasant Corporation (NASDAQ:RNST). This group of stocks’ market values are closest to GLUU’s market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OI,25,242769,-4 SPNS,6,43003,-4 CYTK,26,391206,4 AVNS,15,168412,-1 ACB,10,42330,1 SILK,20,103752,8 RNST,10,8447,-2 Average,16,142846,0.3 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $236 million in GLUU’s case. Cytokinetics, Inc. (NASDAQ:CYTK) is the most popular stock in this table. On the other hand Sapiens International Corporation N.V. (NASDAQ:SPNS) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Glu Mobile Inc. (NASDAQ:GLUU) is more popular among hedge funds. Our overall hedge fund sentiment score for GLUU is 90. 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 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 33% in 2020 through the end of August and still beat the market by 23.2 percentage points. Unfortunately GLUU wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on GLUU were disappointed as the stock returned -14.3% since the end of the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.

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

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