The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Shutterstock Inc (NYSE:SSTK) from the perspective of those successful funds.
Is Shutterstock Inc (NYSE:SSTK) a buy here? The smart money is really buying. The number of long hedge fund investments improved by 2 in recent months. SSTK was in 9 hedge funds’ portfolios at the end of September. There were 7 hedge funds in our database with SSTK positions at the end of the previous quarter. 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 Wageworks Inc (NYSE:WAGE), Manitowoc Foodservice Inc(NYSE:MFS), and Darling International Inc. (NYSE:DAR) to gather more data points.
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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 does the smart money think about Shutterstock Inc (NYSE:SSTK)?
At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a gain of 29% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SSTK over the last 5 quarters. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies, one of the largest hedge funds in the world, holds the largest position in Shutterstock Inc (NYSE:SSTK). Renaissance Technologies has a $19.2 million position in the stock. Coming in second is D E Shaw, led by D. E. Shaw, which holds a $5.7 million position. Remaining members of the smart money with similar optimism encompass Cliff Asness’ AQR Capital Management, and Frank Slattery’s Symmetry Peak Management. 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.
