Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Bristow Group Inc (NYSE:BRS).
Is Bristow Group Inc (NYSE:BRS) a marvelous investment now? Money managers are in a bullish mood. The number of long hedge fund positions went up by 8 in recent months. At the end of this article we will also compare BRS to other stocks including Rovi Corporation (NASDAQ:ROVI), Dominion Diamond Corp (NYSE:DDC), and New Senior Investment Group Inc (NYSE:SNR) to get a better sense of its popularity.
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With all of this in mind, let’s take a look at the recent action encompassing Bristow Group Inc (NYSE:BRS).
How are hedge funds trading Bristow Group Inc (NYSE:BRS)?
Heading into Q4, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 57% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Israel Englander’s Millennium Management has the biggest position in Bristow Group Inc (NYSE:BRS), worth close to $13.4 million, amounting to less than 0.1% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which holds a $10 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Other professional money managers that are bullish encompass Ken Griffin’s Citadel Investment Group, Steve Cohen’s Point72 Asset Management and Glenn Russell Dubin’s Highbridge Capital Management.
Now, key money managers have been driving this bullishness. Point72 Asset Management, managed by Steve Cohen, established the most valuable position in Bristow Group Inc (NYSE:BRS). Point72 Asset Management had $4 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $4 million investment in the stock during the quarter. The following funds were also among the new BRS investors: John Overdeck and David Siegel’s Two Sigma Advisors, Paul Orlin and Alex Porter’s Amici Capital, and Ray Carroll’s Breton Hill Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Bristow Group Inc (NYSE:BRS) but similarly valued. These stocks are Rovi Corporation (NASDAQ:ROVI), Dominion Diamond Corp (NYSE:DDC), New Senior Investment Group Inc (NYSE:SNR), and Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE). This group of stocks’ market values are similar to BRS’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ROVI | 22 | 96153 | 2 |
| DDC | 18 | 70933 | -4 |
| SNR | 17 | 262030 | -10 |
| JE | 10 | 14062 | 3 |
As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $231 million in BRS’s case. Rovi Corporation (NASDAQ:ROVI) is the most popular stock in this table. On the other hand Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE) is the least popular one with only 10 bullish hedge fund positions. Bristow Group Inc (NYSE:BRS) is among the most popular stocks in this group and that makes BRS worth a closer look.
