Hedge Funds Are Betting On Ingram Micro Inc. (IM)

You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.

Ingram Micro Inc. (NYSE:IM) investors should pay attention to an increase in hedge fund sentiment recently. At the end of this article we will also compare IM to other stocks including W.R. Grace & Co. (NYSE:GRA), WABCO Holdings Inc. (NYSE:WBC), and Casey’s General Stores, Inc. (NASDAQ:CASY) to get a better sense of its popularity.

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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Now, we’re going to review the fresh action surrounding Ingram Micro Inc. (NYSE:IM).

How are hedge funds trading Ingram Micro Inc. (NYSE:IM)?

At the end of the third quarter, a total of 41 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from the second quarter of 2016. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Nick Niell’s Arrowgrass Capital Partners has the biggest position in Ingram Micro Inc. (NYSE:IM), worth close to $121 million, amounting to 1.6% of its total 13F portfolio. The second most bullish fund manager is Alec Litowitz and Ross Laser of Magnetar Capital, with a $107.5 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions consist of Robert Emil Zoellner’s Alpine Associates, Richard Driehaus’ Driehaus Capital and D. E. Shaw’s D E Shaw.