The elite 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 NeoGenomics, Inc. (NASDAQ:NEO) from the perspective of those elite funds.
Hedge fund interest in NeoGenomics, Inc. (NASDAQ:NEO) shares was flat at the end of last quarter. This is usually a negative indicator. It might come with a little bit of a surprise, as the shares of NeoGenomics, Inc. (NASDAQ:NEO) gained 5.91% value during the third quarter. We will find out more about the hedgies that held stake in NeoGenomics, Inc. (NASDAQ:NEO), at the end of the last quarter.
At the end of this article, we will also compare NeoGenomics, Inc. (NASDAQ:NEO) to other stocks, including Perry Ellis International, Inc. (NASDAQ:PERY), and Addus Homecare Corporation (NASDAQ:ADUS) to get a better sense of its popularity.
Today, there are a lot of formulas stock traders have at their disposal to grade their holdings. A pair of the most underrated formulas are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the S&P 500 by a healthy margin (see the details here).
Keeping this in mind, let’s check out the new action regarding NeoGenomics, Inc. (NASDAQ:NEO).
How are hedge funds trading NeoGenomics, Inc. (NASDAQ:NEO)?
Heading into Q4, a total of 9 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Driehaus Capital, managed by Richard Driehaus, holds the largest position in NeoGenomics, Inc. (NASDAQ:NEO). Driehaus Capital has a $10 million position in the stock, comprising 0.4% of its 13F portfolio. The second most bullish fund manager is Renaissance Technologies, which holds a $1.8 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish contain D E Shaw, Mario Gabelli’s GAMCO Investors, and Mark Coe’s Coe Capital Management.