They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth.
It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
FSTR shareholders have witnessed an increase in hedge fund sentiment recently. There were 14 hedge funds in our database with FSTR holdings at the end of the quarter.
Our calculations also showed that FSTR isn't among the 30 most popular stocks among hedge funds see the video below. Video: Click loking image to watch our video about the top 5 most popular hedge fund stocks.
Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between and However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May through May 30, see the details here. We were also able to identify in advance a select group of hedge fund holdings that'll ificantly underperform the market.
We have been tracking and sharing the list of these stocks since February and they lost That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Christopher S.
Let's take a look at the new hedge fund action surrounding L. Story continues What does smart money think about L.
The graph below displays the of hedge funds with bullish position lokoing FSTR over the last 16 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Now, key money managers were leading the bulls' herd. Millennium Managementmanaged by Israel Englander, created the largest position in L. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as L.
This group of stocks' market valuations resemble FSTR's market valuation. As you can see these stocks had an average of 5.
Compared to these stocks L. Our calculations showed that top 20 fr popular stocks among hedge funds returned If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market in Q3.
Disclosure: None. This article was originally published at Insider Monkey.