Is Liberator Medical Holdings Inc (NYSEMKT:LBMH) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Is Liberator Medical Holdings Inc (NYSEMKT:LBMH) a splendid investment right now? Prominent investors are getting more optimistic. The number of bullish hedge fund bets inched up by 1 in recent months, which could be accredited to the growth in share value of the company, rising 12.56% during the third quarter. Let us find out more about the hedge funds holding positions in Liberator Medical Holdings Inc (NYSEMKT:LBMH).
For a better understanding of the overall hedge fund sentiment, we will also compare Liberator Medical Holdings Inc (NYSEMKT:LBMH) to other stocks, including Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR), Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), and Northwest Pipe Company (NASDAQ:NWPX) to get a better sense of its popularity.
Follow Liberator Medical Holdings Inc. (NYSEMKT:LBMH)
Follow Liberator Medical Holdings Inc. (NYSEMKT:LBMH)
According to most investors, hedge funds are seen as slow, old investment vehicles of years past. While there are greater than 8000 funds in operation today, We look at the moguls of this group, approximately 700 funds. These hedge fund managers handle the bulk of all hedge funds’ total capital, and by keeping an eye on their highest performing picks, Insider Monkey has discovered various investment strategies that have historically surpassed the market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, let’s take a look at the new action surrounding Liberator Medical Holdings Inc (NYSEMKT:LBMH).
How are hedge funds trading Liberator Medical Holdings Inc (NYSEMKT:LBMH)?
Heading into Q4, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 17% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Israel Englander’s Millennium Management has the biggest position in Liberator Medical Holdings Inc (NYSEMKT:LBMH), worth close to $11.6 million, corresponding to less than 0.1% of its total 13F portfolio. On Millennium Management’s heels is GAMCO Investors, led by Mario Gabelli, holding a $0.5 million position; less than 0.1% of its 13F portfolio is allocated to the company. Some other professional money managers that are bullish encompass Renaissance Technologies, Cliff Asness’ AQR Capital Management, and D. E. Shaw.
Now, specific money managers have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most outsized position in Liberator Medical Holdings Inc (NYSEMKT:LBMH). Balyasny Asset Management had $27,000 invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $24,000 investment in the stock during the quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Liberator Medical Holdings Inc (NYSEMKT:LBMH) but similarly valued. These stocks are Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR), Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), Northwest Pipe Company (NASDAQ:NWPX), and Catabasis Pharmaceuticals Inc (NASDAQ:CATB). This group of stocks’ market valuations are similar to Liberator Medical Holdings Inc (NYSEMKT:LBMH)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WHLR | 7 | 30444 | -2 |
| ZYNE | 4 | 23146 | 4 |
| NWPX | 8 | 19011 | 0 |
| CATB | 5 | 14272 | -1 |
As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $12 million in Liberator Medical Holdings Inc (NYSEMKT:LBMH)’s case. Northwest Pipe Company (NASDAQ:NWPX) is the most popular stock in this table. On the other hand, Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) is the least popular one with only 4 bullish hedge fund positions. Liberator Medical Holdings Inc (NYSEMKT:LBMH) 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, Northwest Pipe Company (NASDAQ:NWPX) might be a better candidate to consider a long position.
