Should You Avoid Allied Motion Technologies, Inc. (AMOT)?

The third quarter was a rough one for most investors, as fears of an interest rate hike in the U.S, a weakening economy in China, and a stagnant Europe, weighed heavily on the minds of investors. Both the S&P 500 and Russell 2000 sank as a result, with the Russell 2000, which is composed of smaller companies, being hit especially hard. This was primarily due to hedge funds, which are big supporters of small-cap stocks, pulling some of their capital out of the volatile markets during this time. Let’s look at how this market volatility affected the sentiment of hedge funds towards Allied Motion Technologies, Inc. (NASDAQ:AMOT), and what that likely means for the prospects of the company and its stock.

Allied Motion Technologies, Inc. (NASDAQ:AMOT) investors should pay attention to a decrease in hedge fund interest recently. At the end of this article we will also compare AMOT to other stocks, including Enphase Energy Inc (NASDAQ:ENPH), Bill Barrett Corporation (NYSE:BBG), and Care.com Inc (NYSE:CRCM) to get a better sense of its popularity.

According to most stock holders, hedge funds are assumed to be worthless, old financial tools of yesteryear. While there are over 8000 funds with their doors open at the moment, Our researchers hone in on the upper echelon of this club, around 700 funds. These investment experts manage the lion’s share of the smart money’s total asset base, and by shadowing their first-class equity investments, Insider Monkey has spotted a number of investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points per year for a decade in their back tests.

Now, we’re going to check out the latest action regarding Allied Motion Technologies, Inc. (NASDAQ:AMOT).

Hedge fund activity in Allied Motion Technologies, Inc. (NASDAQ:AMOT)

Heading into Q4, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Allied Motion Technologies, Inc. (NASDAQ:AMOT). Renaissance Technologies has an $2.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is AQR Capital Management, led by Cliff Asness, holding an $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism encompass Peter Muller’s PDT Partners, Israel Englander’s Millennium Management and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.