Published on 10 Nov 2021 on Insider Monkey via Yahoo Finance

Was The Smart Money Right About Godaddy Inc (GDDY)?

With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was Godaddy Inc (NYSE:GDDY).

Hedge fund interest in Godaddy Inc (NYSE:GDDY) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that GDDY isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings). At the end of this article we will also compare GDDY to other stocks including Citrix Systems, Inc. (NASDAQ:CTXS), UDR, Inc. (NYSE:UDR), and Fair Isaac Corporation (NYSE:FICO) to get a better sense of its popularity.

So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.