How do we determine whether Lions Gate Entertainment Corp. (USA) (NYSE:LGF) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.
Lions Gate Entertainment Corp. (USA) (NYSE:LGF) investors should be aware of a decrease in hedge fund sentiment recently. 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 Lazard Ltd (NYSE:LAZ), OGE Energy Corp. (NYSE:OGE), and 58.com Inc (ADR) (NYSE:WUBA) to gather more data points.
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In the eyes of most traders, hedge funds are seen as unimportant, old investment tools of years past. While there are greater than an 8000 funds in operation at the moment, We hone in on the elite of this group, around 700 funds. These investment experts have their hands on most of all hedge funds’ total capital, and by keeping track of their inimitable picks, Insider Monkey has deciphered various investment strategies that have historically outperformed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, we’re going to go over the recent action surrounding Lions Gate Entertainment Corp. (USA) (NYSE:LGF).
What have hedge funds been doing with Lions Gate Entertainment Corp. (USA) (NYSE:LGF)?
At the end of the third quarter, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a drop of 6% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, MHR Fund Management, managed by Mark Rachesky, holds the largest position in Lions Gate Entertainment Corp. (USA) (NYSE:LGF). The fund reportedly holds a $1.48 billion stake in the company, comprising 69.4% of its 13F portfolio. Coming in second is JANA Partners, managed by Barry Rosenstein, which holds a $264.3 million position; 3% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions contain David Goel and Paul Ferri’s Matrix Capital Management, Masroor Siddiqui and Bruce Emery’s Naya Capital and Ken Griffin’s Citadel Investment Group.
