It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 7.6% over the 12-month period ending November 21, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored mid-cap stocks by the best performing hedge funds monitored by Insider Monkey generated a return of 18% over the same time span. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in Grupo Supervielle SA -ADR (NYSE:SUPV).
Hedge fund interest in Grupo Supervielle SA -ADR (NYSE:SUPV) shares was flat at the end of last quarter, with 10 hedge funds bullish on the company. This is usually a negative indicator. 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 Marcus & Millichap Inc (NYSE:MMI), Surgery Partners Inc (NASDAQ:SGRY), and Lannett Company, Inc. (NYSEAMEX:LCI) to gather more data points.
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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What have hedge funds been doing with Grupo Supervielle SA -ADR (NYSE:SUPV)?
Heading into the fourth quarter of 2016, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the second quarter of 2016. On the other hand, there were a total of 0 hedge funds with a bullish position in SUPV at the beginning of this year. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Dan Loeb of Third Point holds the number one position in Grupo Supervielle SA -ADR (NYSE:SUPV). Third Point has a $66.6 million position in the stock. The second most bullish fund manager is Zach Schreiber of Point State Capital holding a $41.7 million position. Other professional money managers that hold long positions encompass George Soros’ Soros Fund Management, Nitin Saigal and Dan Jacobs’s Kora Management and Michael Barnes and Arif Inayatullah’s Tricadia Capital Management. We should note that Soros Fund Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. At the top of the heap, David Halpert’s Prince Street Capital Management dropped the biggest investment of the “upper crust” of funds studied by Insider Monkey, comprising about $1.3 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund said goodbye to about $1.2 million worth of shares.
Let’s now take a look at hedge fund activity in other stocks similar to Grupo Supervielle SA -ADR (NYSE:SUPV). We will take a look at Marcus & Millichap Inc (NYSE:MMI), Surgery Partners Inc (NASDAQ:SGRY), Lannett Company, Inc. (NYSEAMEX:LCI), and Array Biopharma Inc (NASDAQ:ARRY). This group of stocks’ market valuations match SUPV’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MMI | 12 | 100363 | -1 |
| SGRY | 7 | 39106 | -2 |
| LCI | 14 | 71986 | 2 |
| ARRY | 32 | 394871 | 15 |
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $168 million in SUPV’s case. Array Biopharma Inc (NASDAQ:ARRY) is the most popular stock in this table. On the other hand Surgery Partners Inc (NASDAQ:SGRY) is the least popular one with only 7 bullish hedge fund positions. Grupo Supervielle SA -ADR (NYSE:SUPV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ARRY might be a better candidate to consider taking a long position in.
Disclosure: None
