Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: VOXX International Corp (NASDAQ:VOXX).
Is VOXX International Corp (NASDAQ:VOXX) a buy, sell, or hold? Prominent investors are categorically selling. The number of bullish hedge fund investments went down by 2 recently. There were 7 hedge funds in our database with VOXX positions at the end of the 2016 third quarter. At the end of this article we will also compare VOXX to other stocks including Peak Resorts Inc (NASDAQ:SKIS), Adamis Pharmaceuticals Corp (NASDAQ:ADMP), and Steadymed Ltd (NASDAQ:STDY) to get a better sense of its popularity.
Follow Voxx International Corp (NASDAQ:VOXX)
Follow Voxx International Corp (NASDAQ:VOXX)
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.
Shutter_M/Shutterstock.com
Keeping this in mind, we’re going to check out the latest action regarding VOXX International Corp (NASDAQ:VOXX).
What have hedge funds been doing with VOXX International Corp (NASDAQ:VOXX)?
At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 22% from the second quarter of 2016. On the other hand, there were a total of 7 hedge funds with a bullish position in VOXX at the beginning of this year. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Irving Kahn’s Kahn Brothers has the number one position in VOXX International Corp (NASDAQ:VOXX), worth close to $5.2 million, accounting for 0.9% of its total 13F portfolio. Coming in second is Royce & Associates, led by Chuck Royce, holding a $4.3 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Renaissance Technologies, one of the largest hedge funds in the world, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and D. E. Shaw’s D E Shaw. 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.
Seeing as VOXX International Corp (NASDAQ:VOXX) has gone through declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of fund managers that elected to cut their full holdings by the end of the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management cut the largest stake of all the investors watched by Insider Monkey, totaling about $0.3 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also dropped its stock, about $0.1 million worth of shares.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as VOXX International Corp (NASDAQ:VOXX) but similarly valued. These stocks are Peak Resorts Inc (NASDAQ:SKIS), Adamis Pharmaceuticals Corp (NASDAQ:ADMP), Steadymed Ltd (NASDAQ:STDY), and Chiasma Inc (NASDAQ:CHMA). This group of stocks’ market valuations are closest to VOXX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SKIS | 3 | 7873 | -1 |
| ADMP | 3 | 3241 | 0 |
| STDY | 5 | 18007 | 5 |
| CHMA | 2 | 1545 | 0 |
As you can see these stocks had an average of 3 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $11 million in VOXX’s case. Steadymed Ltd (NASDAQ:STDY) is the most popular stock in this table. On the other hand Chiasma Inc (NASDAQ:CHMA) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks VOXX International Corp (NASDAQ:VOXX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: none.
