Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Rent-A-Center Inc (NASDAQ:RCII) based on that data.
Rent-A-Center Inc (NASDAQ:RCII) was in 27 hedge funds’ portfolios at the end of the third quarter of 2015. Rent-A-Center Inc (NASDAQ:RCII) shareholders have witnessed a decrease in hedge fund interest lately. There were 31 hedge funds in our database with Rent-A-Center Inc (NASDAQ:RCII) holdings at the end of the previous quarter. At the end of this article, we will also compare Rent-A-Center Inc (NASDAQ:RCII) to other stocks, including Nevro Corp (NYSE:NVRO), Surgical Care Affiliates Inc (NASDAQ:SCAI), and TeleTech Holdings, Inc. (NASDAQ:TTEC) to get a better sense of its popularity.
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In the 21st century investor’s toolkit, there are plenty of metrics stock traders put to use to appraise stocks. Some of the most innovative metrics are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the S&P 500 by a superb amount (see the details here).
With all of this in mind, we’re going to take a look at the recent action surrounding Rent-A-Center Inc (NASDAQ:RCII).
How have hedgies been trading Rent-A-Center Inc (NASDAQ:RCII)?
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 13% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund and institutional investor database, Phill Gross and Robert Atchinson’s Adage Capital Management has the number one position in Rent-A-Center Inc (NASDAQ:RCII), worth close to $59.6 million, comprising 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Hirzel Capital Management, managed by Zac Hirzel, which holds a $46.3 million position; 6.6% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions encompass Richard S. Pzena’s Pzena Investment Management, Chuck Royce’s Royce & Associates and Ron Gutfleish’s Elm Ridge Capital.
Seeing as Rent-A-Center Inc (NASDAQ:RCII) has witnessed a bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds that elected to cut their positions entirely heading into Q4. Interestingly, Dmitry Balyasny’s Balyasny Asset Management cut the biggest position of all the hedgies followed by Insider Monkey, comprising an estimated $11.8 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $6.3 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 4 funds heading into Q4.
Let’s now review hedge fund activity in other stocks similar to Rent-A-Center Inc (NASDAQ:RCII). We will take a look at Nevro Corp (NYSE:NVRO), Surgical Care Affiliates Inc (NASDAQ:SCAI), TeleTech Holdings, Inc. (NASDAQ:TTEC), and Forward Air Corporation (NASDAQ:FWRD). This group of stocks’ market caps matches Rent-A-Center Inc (NASDAQ:RCII)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NVRO | 21 | 221801 | 2 |
| SCAI | 16 | 59011 | 1 |
| TTEC | 16 | 24189 | 2 |
| FWRD | 13 | 201040 | -3 |
As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $127 million. That figure was $243 million in Rent-A-Center Inc (NASDAQ:RCII)’s case. Nevro Corp (NYSE:NVRO) is the most popular stock in this table. On the other hand, Forward Air Corporation (NASDAQ:FWRD) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Rent-A-Center Inc (NASDAQ:RCII) 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.
