LDR Holding Corp (LDRH): Are Hedge Funds Right About This Stock?

The worries about the economic slowdown in China and the ongoing uncertainty about the path of interest-rate increases triggered several waves of equity sell-offs during the third quarter. Of course, most hedge funds and other asset managers had to stomach substantial losses during the bloody three-month period, which might have caused some to consider fleeing the U.S. equity markets. Interestingly, smaller-cap stocks registered higher losses than large-capitalization stocks during the September quarter, suggesting that institutional investors heavily discarded seemingly riskier equities amid high uncertainty and turmoil. In fact, the Russell 2000 Index lost 11.9% in the third quarter, while the Standard and Poor’s 500 benchmark declined a mere 6.4%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards LDR Holding Corp (NASDAQ:LDRH).

LDR Holding Corp was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. LDRH investors should pay attention to a decrease in hedge fund interest of late. There were 14 hedge funds in our database with LDRH 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 Costamare Inc (NYSE:CMRE), Krispy Kreme Doughnuts (NYSE:KKD), and MDC Partners Inc. (USA) (NASDAQ:MDCA) to gather more data points.

In the eyes of most investors, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are over 8000 funds trading today, Our experts choose to focus on the bigwigs of this club, around 700 funds. It is estimated that this group of investors direct most of all hedge funds’ total asset base, and by paying attention to their finest investments, Insider Monkey has revealed various investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points annually for a decade in their back tests.

Now, we’re going to analyze the new action encompassing LDR Holding Corp (NASDAQ:LDRH).

How are hedge funds trading LDR Holding Corp (NASDAQ:LDRH)?

At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -21% from the second quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Clifford Fox’s Columbus Circle Investors has the number one position in LDR Holding Corp (NASDAQ:LDRH), worth close to $38.7 million, amounting to 0.3% of its total 13F portfolio. Coming in second is Highland Capital Management, managed by James Dondero, which holds a $37.9 million position; 1.1% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors with similar optimism consist of Drew Cupps’s Cupps Capital Management, Richard Driehaus’s Driehaus Capital and Jim Simons’ Renaissance Technologies.