Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those successful funds in these small-cap stocks. In the following paragraphs, we analyze Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) from the perspective of those successful funds.
Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) has experienced a decrease in support from the world’s most successful money managers in recent months. There were 12 hedge funds in our database with IRS positions at the end of September. 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 Analogic Corporation (NASDAQ:ALOG), McEwen Mining Inc (NYSE:MUX), and NuStar GP Holdings, LLC (NYSE:NSH) to gather more data points.
Follow I R S A Inversiones Y Rep S A (NYSE:IRS)
Follow I R S A Inversiones Y Rep S A (NYSE:IRS)
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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With all of this in mind, let’s view the key action regarding Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS).
What have hedge funds been doing with Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS)?
Heading into the fourth quarter of 2016, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by one from the second quarter of 2016. On the other hand, there were a total of 12 hedge funds with a bullish position in IRS at the beginning of this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, FinePoint Capital, led by Herb Wagner, holds the largest position in Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS). FinePoint Capital has a $21.8 million position in the stock, comprising 9.7% of its 13F portfolio. Sitting at the No. 2 spot is Serengeti Asset Management, led by Jody LaNasa, holding a $19 million position; the fund has 4.8% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions contain Michael Barnes and Arif Inayatullah’s Tricadia Capital Management, Paul Singer’s Elliott Management, and Ari Zweiman’s 683 Capital Partners. We should note that 683 Capital Partners 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 sold off their positions entirely. Interestingly, Millennium Management, one of the 10 largest hedge funds in the world sold off the largest stake of all the hedgies tracked by Insider Monkey, totaling close to $0.5 million in stock. Edmond M. Safra’s fund, EMS Capital, also dropped its stock, about $0.2 million worth.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) but similarly valued. We will take a look at Analogic Corporation (NASDAQ:ALOG), McEwen Mining Inc (NYSE:MUX), NuStar GP Holdings, LLC (NYSE:NSH), and Comfort Systems USA, Inc. (NYSE:FIX). This group of stocks’ market valuations are closest to IRS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ALOG | 9 | 98968 | -2 |
| MUX | 8 | 17065 | -2 |
| NSH | 4 | 6488 | -2 |
| FIX | 20 | 135484 | -1 |
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 $65 million. That figure was $89 million in IRS’s case. Comfort Systems USA, Inc. (NYSE:FIX) is the most popular stock in this table. On the other hand NuStar GP Holdings, LLC (NYSE:NSH) is the least popular one with only four funds holding long positions. Irsa Inversiones y Rprsntcins SA (ADR) (NYSE:IRS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FIX might be a better candidate to consider taking a long position in.
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