Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Valeant and SunEdison, have not done well during the last 12 months due to various reasons. Nevertheless, the data show elite investors’ consensus picks have done well on average. The top 30 mid-cap stocks (market caps between $1 billion and $10 billion) among hedge funds delivered an average return of 18% during the last four quarters. S&P 500 Index returned only 7.6% during the same period and less than 49% of its constituents managed to beat this return. Because their consensus picks have done well, we pay attention to what elite funds and billionaire investors think before doing extensive research on a stock. In this article, we will take a closer look at FleetCor Technologies, Inc. (NYSE:FLT) from the perspective of these investors.
FleetCor Technologies, Inc. (NYSE:FLT) investors should pay attention to an increase in support from the world’s most elite money managers recently. However, 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 Church & Dwight Co., Inc. (NYSE:CHD), Red Hat, Inc. (NYSE:RHT), and Kimco Realty Corp (NYSE:KIM) to gather more data points.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, let’s analyze the key action encompassing FleetCor Technologies, Inc. (NYSE:FLT).
What have hedge funds been doing with FleetCor Technologies, Inc. (NYSE:FLT)?
At the end of the third quarter, a total of 60 of the hedge funds tracked by Insider Monkey held long positions in this stock, up by 15% over the quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in FleetCor Technologies, Inc. (NYSE:FLT). Lone Pine Capital has a $847.4 million position in the stock, comprising 3.8% of its 13F portfolio. Coming in second is Chase Coleman’s Tiger Global Management LLC, with a $417.8 million position; the fund has 6% of its 13F portfolio invested in the stock. Other professional money managers that are bullish include Daniel S. Och’s OZ Management, John Griffin’s Blue Ridge Capital and Joel Ramin’s 12 West Capital Management.
