You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Among the funds we track at Insider Monkey, Chemours Co (NYSE:CC) was included in the portfolios of 31 funds at the end of September. Chemours has experienced an increase in enthusiasm from smart money during the third quarter, as there had been 28 funds holding shares of Chemours a quarter earlier. However, 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 Houlihan Lokey Inc (NYSE:HLI), GoPro Inc (NASDAQ:GPRO), and Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) to gather more data points.
Follow Chemours Co (NYSE:CC)
Follow Chemours Co (NYSE:CC)
In the financial world there are tons of indicators stock traders put to use to appraise stocks. A duo of the less known indicators are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the best money managers can outpace the broader indices by a solid margin (see the details here).
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With all of this in mind, let’s review the new action encompassing Chemours Co (NYSE:CC).
How have hedgies been trading Chemours Co (NYSE:CC)?
As mentioned earlier in this article, during the third quarter, the number of funds tracked by Insider Monkey long Chemours went up by three to 31. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, David Einhorn’s Greenlight Capital has the most valuable position in Chemours Co (NYSE:CC), worth close to $261.9 million, corresponding to 5% of its total 13F portfolio. Sitting at the No. 2 spot is Sessa Capital, managed by John Petry, which holds a $124.8 million position; 27.7% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism consist of Thomas E. Claugus’ GMT Capital, Jeffrey Gates’s Gates Capital Management and Debra Fine’s Fine Capital Partners.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Point72 Asia (Singapore), managed by Steve Cohen, established the largest position in Chemours Co (NYSE:CC). Point72 Asia (Singapore) had $20.6 million invested in the company at the end of the quarter. Jonathan Barrett and Paul Segal’s Luminus Management also made a $14.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Robert B. Gillam’s McKinley Capital Management, Steve Cohen’s Point72 Asset Management, and Mark Coe’s Coe Capital Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Chemours Co (NYSE:CC) but similarly valued. We will take a look at Houlihan Lokey Inc (NYSE:HLI), GoPro Inc (NASDAQ:GPRO), Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI), and The Empire District Electric Company (NYSE:EDE). This group of stocks’ market values are similar to Chemours’ market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HLI | 10 | 56230 | 2 |
| GPRO | 20 | 164960 | 4 |
| OLLI | 22 | 182940 | 3 |
| EDE | 7 | 116219 | -3 |
As you can see these stocks had an average of 15 investors with bullish positions and the average amount invested in these stocks was $130 million. That figure was $736 million in Chemours’ case. Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) is the most popular stock in this table. On the other hand The Empire District Electric Company (NYSE:EDE) is the least popular one with only seven bullish hedge fund positions. Compared to these stocks Chemours Co (NYSE:CC) 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.
