The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Neogen Corporation (NASDAQ:NEOG) from the perspective of those successful funds.
Neogen Corporation (NASDAQ:NEOG) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. At the end of this article we will also compare NEOG to other stocks including Moog Inc (NYSE:MOG), Criteo SA (ADR) (NASDAQ:CRTO), and Sothebys (NYSE:BID) to get a better sense of its popularity.
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.
Kateryna Kon/Shutterstock.com
Now, let’s take a glance at the fresh action regarding Neogen Corporation (NASDAQ:NEOG).
What does the smart money think about Neogen Corporation (NASDAQ:NEOG)?
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. The graph below displays the number of hedge funds with bullish position in NEOG over the last 5 quarters. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Robert Joseph Caruso of Select Equity Group holds the most valuable position in Neogen Corporation (NASDAQ:NEOG). The fund reportedly holds a $10.7 million position in the stock. The second largest stake is held by Renaissance Technologies, one of the largest hedge funds in the world, which oversees a $9 million investment in NEOG. Remaining hedge funds and institutional investors that hold long positions include Chuck Royce’s Royce & Associates, Joseph A. Jolson’s Harvest Capital Strategies and Matthew A. Weatherbie’s Weatherbie Capital. We should note that none of these hedge funds are 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.
