Legendary investors such as Jeffrey Talpins 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 elite funds in these small-cap stocks. In the following paragraphs, we analyze GasLog Ltd (NYSE:GLOG) from the perspective of those elite funds.
GasLog Ltd (NYSE:GLOG) has seen an increase in hedge fund sentiment lately. GLOG was in 15 hedge funds’ portfolios at the end of December. There were 10 hedge funds in our database with GLOG positions at the end of the previous quarter. Our calculations also showed that GLOG isn’t among the 30 most popular stocks among hedge funds.
In the eyes of most shareholders, hedge funds are assumed to be underperforming, outdated investment vehicles of the past. While there are more than 8000 funds in operation at present, Our experts look at the moguls of this club, approximately 750 funds. It is estimated that this group of investors control the lion’s share of the smart money’s total asset base, and by paying attention to their best investments, Insider Monkey has brought to light several investment strategies that have historically surpassed the market. Insider Monkey’s flagship hedge fund strategy beat the S&P 500 index by nearly 5 percentage points a year since its inception in May 2014 through early November 2018. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 27.5% since February 2017 (through March 12th) even though the market was up nearly 25% during the same period. We just shared a list of 6 short targets in our latest quarterly update and they are already down an average of 6% in less than a month.
We’re going to take a look at the latest hedge fund action regarding GasLog Ltd (NYSE:GLOG).
Hedge fund activity in GasLog Ltd (NYSE:GLOG)
At the end of the fourth quarter, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from one quarter earlier. On the other hand, there were a total of 9 hedge funds with a bullish position in GLOG a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Renaissance Technologies held the most valuable stake in GasLog Ltd (NYSE:GLOG), which was worth $18 million at the end of the fourth quarter. On the second spot was Millennium Management which amassed $10 million worth of shares. Moreover, Royce & Associates, Marshall Wace LLP, and GLG Partners were also bullish on GasLog Ltd (NYSE:GLOG), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, specific money managers have been driving this bullishness. Anchor Bolt Capital, managed by Robert Polak, created the biggest position in GasLog Ltd (NYSE:GLOG). Anchor Bolt Capital had $5.6 million invested in the company at the end of the quarter. Vince Maddi and Shawn Brennan’s SIR Capital Management also initiated a $2.5 million position during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, John Overdeck and David Siegel’s Two Sigma Advisors, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as GasLog Ltd (NYSE:GLOG) but similarly valued. These stocks are Marcus & Millichap Inc (NYSE:MMI), Loma Negra Compania Industrial Argentina Sociedad Anonima (NYSE:LOMA), Universal Insurance Holdings, Inc. (NYSEAMEX:UVE), and Nevsun Resources Ltd. (NYSEAMEX:NSU). This group of stocks’ market caps resemble GLOG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MMI | 13 | 130881 | -2 |
| LOMA | 7 | 13624 | -4 |
| UVE | 20 | 40809 | 6 |
| NSU | 12 | 141823 | -3 |
| Average | 13 | 81784 | -0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $66 million in GLOG’s case. Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) is the most popular stock in this table. On the other hand Loma Negra Compania Industrial Argentina Sociedad Anonima (NYSE:LOMA) is the least popular one with only 7 bullish hedge fund positions. GasLog Ltd (NYSE:GLOG) 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. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Unfortunately GLOG wasn’t nearly as popular as these 15 stock and hedge funds that were betting on GLOG were disappointed as the stock returned -0.2% and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 15 most popular stocks) among hedge funds as 13 of these stocks already outperformed the market this year.
Disclosure: None. This article was originally published at Insider Monkey.
