Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Hedge fund interest in La Quinta Holdings Inc (NYSE:LQ) shares was flat at the end of last quarter. This is usually a negative indicator. 14 hedge funds that we track owned the stock on September 30, same as on June 30. At the end of this article we will also compare LQ to other stocks including 2U Inc (NASDAQ:TWOU), Fidelity & Guaranty Life (NYSE:FGL), and Amkor Technology, Inc. (NASDAQ:AMKR) to get a better sense of its popularity.
Follow La Quinta Holdings Inc. (NYSE:LQ)
Follow La Quinta Holdings Inc. (NYSE:LQ)
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 La Quinta Holdings Inc (NYSE:LQ)?
Heading into the fourth quarter of 2016, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a unchanged from the previous quarter. The graph below displays the number of hedge funds with bullish position in LQ over the last 5 quarters, which shows hedge fund ownership stuck at a yearly low. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Eminence Capital, led by Ricky Sandler, holds the most valuable position in La Quinta Holdings Inc (NYSE:LQ). Eminence Capital has a $101.7 million position in the stock, comprising 1.7% of its 13F portfolio. The second most bullish fund manager is Senator Investment Group, led by Doug Silverman and Alexander Klabin, which holds a $55.9 million position. Some other peers that are bullish include David E. Shaw’s D E Shaw, John Khoury’s Long Pond Capital, and Ken Griffin’s Citadel Investment Group. We should note that none of these hedge funds are 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.
