Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Weyerhaeuser Co (NYSE:WY) has experienced a decrease in support from the world’s most elite money managers recently. WY was in 27 hedge funds’ portfolios at the end of September. There were 30 hedge funds in our database with WY positions at the end of the previous quarter. At the end of this article we will also compare WY to other stocks including Dollar Tree, Inc. (NASDAQ:DLTR), St. Jude Medical, Inc. (NYSE:STJ), and Discover Financial Services (NYSE:DFS) to get a better sense of its popularity.
Follow Weyerhaeuser Co (NYSE:WY)
Follow Weyerhaeuser Co (NYSE:WY)
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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With all of this in mind, we’re going to view the latest action regarding Weyerhaeuser Co (NYSE:WY).
Hedge fund activity in Weyerhaeuser Co (NYSE:WY)
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a drop of 10% from the second quarter of 2016. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Third Avenue Management, run by Martin Whitman, holds the largest position in Weyerhaeuser Co (NYSE:WY). According to regulatory filings, the fund has a $193.1 million position in the stock, comprising 8.8% of its 13F portfolio. The second most bullish fund manager is Balyasny Asset Management, led by Dmitry Balyasny, holding a $66.1 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism comprise Ken Heebner’s Capital Growth Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Ken Griffin’s Citadel Investment Group.
