Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH) in this article.
Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH) shares haven’t seen a lot of action during the third quarter and, overall, hedge fund sentiment was unchanged, as the stock remained almost flat in the same period. The stock was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare BCRH to other stocks, including NV5 Holdings Inc (NASDAQ:NVEE), Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE), and Agile Therapeutics Inc (NASDAQ:AGRX) to get a better sense of its popularity.
Follow Blue Capital Reinsurance Holdings Ltd. (NYSE:BCRH)
Follow Blue Capital Reinsurance Holdings Ltd. (NYSE:BCRH)
Today there are a multitude of formulas investors employ to assess publicly traded companies. Some of the most innovative formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the elite investment managers can trounce their index-focused peers by a significant margin (see the details here).
With all of this in mind, we’re going to view the recent action surrounding Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH).
How are hedge funds trading Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH)?
At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Dmitry Balyasny’s Balyasny Asset Management has the biggest position in Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH), worth close to $1.8 million, comprising less than 0.1%% of its total 13F portfolio. On Balyasny Asset Management’s heels is Brian Taylor’s Pine River Capital Management, with a $1.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism contain Chuck Royce’s Royce & Associates and Jim Simons’ Renaissance Technologies.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s go over hedge fund activity in other stocks similar to Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH). These stocks are NV5 Holdings Inc (NASDAQ:NVEE), Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE), Agile Therapeutics Inc (NASDAQ:AGRX), and Century Casinos, Inc. (NASDAQ:CNTY). This group of stocks’ market caps are closest to BCRH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NVEE | 6 | 12308 | 0 |
| AMPE | 5 | 11275 | -4 |
| AGRX | 9 | 41890 | -1 |
| CNTY | 8 | 33083 | 1 |
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $5 million in BCRH’s case. Agile Therapeutics Inc (NASDAQ:AGRX) is the most popular stock in this table. On the other hand Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH) is even less popular than AMPE. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
