The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Gogo Inc (NASDAQ:GOGO).
Is Gogo Inc (NASDAQ:GOGO) a healthy stock for your portfolio? The smart money is becoming hopeful. The number of long hedge fund bets rose by 5 lately. GOGO was in 21 hedge funds’ portfolios at the end of the third quarter of 2016. There were 16 hedge funds in our database with GOGO positions at the end of the previous quarter. At the end of this article we will also compare GOGO to other stocks including Kelly Services, Inc. (NASDAQ:KELYA), Oritani Financial Corp. (NASDAQ:ORIT), and A. Schulman Inc (NASDAQ:SHLM) to get a better sense of its popularity.
Follow Gogo Inc. (NASDAQ:GOGO)
Follow Gogo Inc. (NASDAQ:GOGO)
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Hedge fund activity in Gogo Inc (NASDAQ:GOGO)
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 31% rise from one quarter earlier, lifting the stock’s ownership among hedge funds to a yearly high. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Stelliam Investment Management, managed by Ross Margolies, holds the number one position in Gogo Inc (NASDAQ:GOGO). Stelliam Investment Management has an $87.2 million position in the stock, comprising 2.9% of its 13F portfolio. Sitting at the No. 2 spot is Valinor Management LLC, led by David Gallo, holding a $40.3 million position; the fund has 1.4% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish comprise Eric F. Billings’ Billings Capital Management, Pasco Alfaro / Richard Tumure’s Miura Global Management and Mario Gabelli’s GAMCO Investors.
Now, key hedge funds have jumped into Gogo Inc (NASDAQ:GOGO) headfirst. Billings Capital Management assembled the most outsized position in Gogo Inc (NASDAQ:GOGO). Billings Capital Management had $12.8 million invested in the company at the end of the quarter. Miura Global Management also made an $11 million investment in the stock during the quarter. The other funds with brand new GOGO positions are D E Shaw, Wojciech Uzdelewicz’s Espalier Global Management, and Ken Griffin’s Citadel Investment Group.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Gogo Inc (NASDAQ:GOGO) but similarly valued. These stocks are Kelly Services, Inc. (NASDAQ:KELYA), Oritani Financial Corp. (NASDAQ:ORIT), A. Schulman Inc (NASDAQ:SHLM), and Northfield Bancorp Inc (NASDAQ:NFBK). This group of stocks’ market values are similar to GOGO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KELYA | 10 | 37124 | 1 |
| ORIT | 14 | 47633 | 3 |
| SHLM | 11 | 77215 | -5 |
| NFBK | 5 | 31621 | 0 |
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $184 million in GOGO’s case. Oritani Financial Corp. (NASDAQ:ORIT) is the most popular stock in this table. On the other hand Northfield Bancorp Inc (NASDAQ:NFBK) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Gogo Inc (NASDAQ:GOGO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and more bullish than they’ve been in the last year, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
