Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Is Eagle Bancorp, Inc. (NASDAQ:EGBN) the right pick for your portfolio? Hedge funds are buying. The number of bullish hedge fund positions inched up by 1 in recent months. 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 OSI Systems, Inc. (NASDAQ:OSIS), Virtusa Corporation (NASDAQ:VRTU), and LTC Properties Inc (NYSE:LTC) to gather more data points.
At the moment there are a lot of signals investors put to use to evaluate their holdings. A couple of the most underrated signals are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the elite investment managers can outclass the market by a very impressive margin (see the details here).
With all of this in mind, let’s view the recent action surrounding Eagle Bancorp, Inc. (NASDAQ:EGBN).
What have hedge funds been doing with Eagle Bancorp, Inc. (NASDAQ:EGBN)?
Heading into Q4, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 10% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Mark Lee’s Forest Hill Capital has the biggest position in Eagle Bancorp, Inc. (NASDAQ:EGBN), worth close to $40.2 million, amounting to 3.8% of its total 13F portfolio. On Forest Hill Capital’s heels is Lee Munder Capital Group, led by Lee Munder, holding an $33.8 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions comprise Fred Cummings’ Elizabeth Park Capital Management, Jim Simons’ Renaissance Technologies, and Ken Fisher’s Fisher Asset Management.