We at Insider Monkey have gone over 738 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 March 31st. In this article, we look at what those funds think of PCM, Inc. (NASDAQ:PCMI) based on that data.
Is PCM, Inc. (NASDAQ:PCMI) a superb stock to buy now? Hedge funds are betting on the stock. The number of long hedge fund positions moved up by 6 lately. Our calculations also showed that pcmi isn't among the 30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
We're going to analyze the recent hedge fund action encompassing PCM, Inc. (NASDAQ:PCMI).
Hedge fund activity in PCM, Inc. (NASDAQ:PCMI)
Heading into the second quarter of 2019, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 55% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards PCMI over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
The largest stake in PCM, Inc. (NASDAQ:PCMI) was held by Royce & Associates, which reported holding $12 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $5.9 million position. Other investors bullish on the company included Arrowstreet Capital, Millennium Management, and Laurion Capital Management.
As industrywide interest jumped, some big names were breaking ground themselves. GLG Partners, managed by Noam Gottesman, created the most valuable position in PCM, Inc. (NASDAQ:PCMI). GLG Partners had $1.6 million invested in the company at the end of the quarter. Michael Gelband's ExodusPoint Capital also initiated a $0.7 million position during the quarter. The other funds with brand new PCMI positions are Ken Griffin's Citadel Investment Group, Michael Platt and William Reeves's BlueCrest Capital Mgmt., and Mike Vranos's Ellington.