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 Accuray Incorporated (NASDAQ:ARAY) worth your attention right now? Hedge funds are getting more optimistic. The number of bullish hedge fund positions advanced by 4 recently. ARAYwas in 18 hedge funds’ portfolios at the end of the third quarter of 2016. There were 14 hedge funds in our database with ARAY positions at the end of the previous quarter. At the end of this article we will also compare ARAY to other stocks including China Cord Blood Corp (NYSE:CO), The Chefs Warehouse, Inc (NASDAQ:CHEF), and ArcBest Corp (NASDAQ:ARCB) 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.
What does the smart money think about Accuray Incorporated (NASDAQ:ARAY)?
Heading into the fourth quarter of 2016, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a gain of 29% from the second quarter of 2016, as ownership of the stock begins to rebound. The graph below displays the number of hedge funds with bullish position in ARAY over the last 5 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Jim Simons’ Renaissance Technologies has the most valuable position in Accuray Incorporated (NASDAQ:ARAY), worth close to $27.3 million. On Renaissance Technologies’ heels is Christopher James of Partner Fund Management, with a $26.9 million position. Other peers with similar optimism include Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, Chuck Royce’s Royce & Associates, and David E. Shaw’s D E Shaw. 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.