Is Silvercrest Asset Management Group Inc (SAMG) A Good Stock To Buy?

It’s a little-known fact that stock performance is not evenly distributed (i.e. you don’t have a 50/50 chance of picking a market-beating stock). In fact, despite the S&P 500 gaining about 5.2% between November 1, 2014 and October 30, 2015, less than 49% of the stocks in the index beat the market during that time. In contrast, the 30 stocks from the index which were the most popular among the investors that we track returned 9.5% during that time and 63% of them beat the market. This shows that while hedge funds get a lot of flak from the mainstream media for their performance, it can be rewarding to follow their moves using the right sets of data. Even then, there is never a foolproof strategy to generating returns, as even the collective wisdom of top hedge funds gets it wrong sometimes, as in the case of some of their top picks from the index like Micron and Anadarko. The data, though, shows that following the collective wisdom of select hedge funds can be a very wise move overall.

Is Silvercrest Asset Management Group Inc (NASDAQ:SAMG) worth your attention right now? Investors who are in the know are turning less bullish. The number of long hedge fund positions fell by 1 in recent months. SAMG was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. There were 5 hedge funds in our database with SAMG positions at the end of the previous quarter. At the end of this article we will also compare SAMG to other stocks, including Gold Resource Corporation (NYSEMKT:GORO), Codexis, Inc. (NASDAQ:CDXS), and LMI Aerospace, Inc. (NASDAQ:LMIA) to get a better sense of its popularity.

In the 21st century investor’s toolkit there are dozens of signals market participants can use to value their stock investments. A couple of the most useful signals are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a healthy amount (see the details here).

With all of this in mind, we’re going to analyze the fresh action surrounding Silvercrest Asset Management Group Inc (NASDAQ:SAMG).

Hedge fund activity in Silvercrest Asset Management Group Inc (NASDAQ:SAMG)

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, a change of -20% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Silvercrest Asset Management Group Inc (NASDAQ:SAMG). Royce & Associates has a $9.9 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Anton Schutz’s Mendon Capital Advisors, with a $3.1 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Some other peers with similar optimism comprise J. Alan Reid, Jr.’s Forward Management and Jim Simons’ Renaissance Technologies.