We have been waiting for this for a year and finally the third quarter ended up showing a nice bump in the performance of small-cap stocks. Both the S&P 500 and Russell 2000 were up since the end of the second quarter, but small-cap stocks outperformed the large-cap stocks by double digits. This is important for hedge funds, which are big supporters of small-cap stocks, because their investors started pulling some of their capital out due to poor recent performance. It is very likely that equity hedge funds will deliver better risk adjusted returns in the second half of this year. In this article we are going to look at how this recent market trend affected the sentiment of hedge funds towards Nuveen Credit Strategies Income Fund (NYSE:JQC), and what that likely means for the prospects of the company and its stock.
Nuveen Credit Strategies Income Fund (NYSE:JQC) investors should be aware of an increase in support from the world’s most successful money managers lately. There were 6 hedge funds in our database with JQC positions at the end of the previous quarter. At the end of this article we will also compare JQC to other stocks including AK Steel Holding Corporation (NYSE:AKS), Ferro Corporation (NYSE:FOE), and Summit Hotel Properties Inc (NYSE:INN) to get a better sense of its popularity.
Follow Nuveen Credit Strategies Income Fund (NYSE:JQC)
Follow Nuveen Credit Strategies Income Fund (NYSE:JQC)
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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Keeping this in mind, we’re going to go over the new action encompassing Nuveen Credit Strategies Income Fund (NYSE:JQC).
Hedge fund activity in Nuveen Credit Strategies Income Fund (NYSE:JQC)
Heading into the fourth quarter of 2016, a total of 7 of the hedge funds tracked by Insider Monkey were bullish on this stock, a jump of 17% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards JQC over the last 5 quarters. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, William Michaelcheck’s Mariner Investment Group has the biggest position in Nuveen Credit Strategies Income Fund (NYSE:JQC), worth close to $7.1 million, corresponding to 3.7% of its total 13F portfolio. On Mariner Investment Group’s heels is Ionic Capital Management, led by Bart Baum, which holds a $2.1 million position; 0.1% of its 13F portfolio is allocated to the company. Other professional money managers with similar optimism consist of Jim Roumell’s Roumell Asset Management, Boaz Weinstein’s Saba Capital and Mark Coe’s Coe Capital Management. We should note that Saba Capital is 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.
