Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. In this article we are going to take a look at smart money sentiment towards Starz (NASDAQ:STRZA).
Starz (NASDAQ:STRZA) investors should be aware of an increase in hedge fund interest of late. STRZA was in 29 hedge funds’ portfolios at the end of the third quarter of 2015. There were 27 hedge funds in our database with STRZA 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 Vail Resorts, Inc. (NYSE:MTN), Sonoco Products Company (NYSE:SON), and WellCare Health Plans, Inc. (NYSE:WCG) to gather more data points.
Follow Starz Acquisition Llc (NASDAQ:STRZA)
Follow Starz Acquisition Llc (NASDAQ:STRZA)
In the 21st century investor’s toolkit there are a large number of gauges shareholders can use to value stocks. A couple of the most under-the-radar gauges are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the top investment managers can beat the broader indices by a solid amount (see the details here).
With all of this in mind, let’s take a look at the new action regarding Starz (NASDAQ:STRZA).
Hedge fund activity in Starz (NASDAQ:STRZA)
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Horizon Asset Management, managed by Murray Stahl, holds the biggest position in Starz (NASDAQ:STRZA). Horizon Asset Management has a $228,9 million position in the stock, comprising 4.2% of its 13F portfolio. Sitting at the No. 2 spot is JANA Partners, managed by Barry Rosenstein, which holds a $207.5 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other professional money managers that are bullish contain D. E. Shaw’s D E Shaw, Malcolm Fairbairn’s Ascend Capital and Josh Resnick’s Jericho Capital Asset Management.
Consequently, key hedge funds have jumped into Starz (NASDAQ:STRZA) headfirst. Ascend Capital, managed by Malcolm Fairbairn, initiated the most outsized position in Starz (NASDAQ:STRZA). Ascend Capital had $52.3 million invested in the company at the end of the quarter. Josh Resnick’s Jericho Capital Asset Management also made a $30.7 million investment in the stock during the quarter. The other funds with brand new STRZA positions are Marc Majzner’s Clearline Capital, Michael Thompson’s BHR Capital, and John C. Walker’s Stonerise Capital Management.
Let’s now review hedge fund activity in other stocks similar to Starz (NASDAQ:STRZA). We will take a look at Vail Resorts, Inc. (NYSE:MTN), Sonoco Products Company (NYSE:SON), WellCare Health Plans, Inc. (NYSE:WCG), and Strategic Hotels and Resorts Inc (NYSE:BEE). This group of stocks’ market values match STRZA’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MTN | 26 | 361720 | 3 |
| SON | 24 | 116135 | 2 |
| WCG | 32 | 724867 | 1 |
| BEE | 31 | 466880 | 16 |
As you can see these stocks had an average of 28.25 hedge funds with bullish positions and the average amount invested in these stocks was $417 million. That figure was $724 million in STRZA’s case. WellCare Health Plans, Inc. (NYSE:WCG) is the most popular stock in this table. On the other hand Sonoco Products Company (NYSE:SON) is the least popular one with only 24 bullish hedge fund positions. Starz (NASDAQ:STRZA) 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 WCG might be a better candidate to consider a long position.
