Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Endologix, Inc. (NASDAQ:ELGX).
Endologix, Inc. shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. ELGX was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. There were 17 hedge funds in our database with ELGX holdings at the end of the previous quarter. At the end of this article we will also compare ELGX to other stocks including Teekay Tankers Ltd. (NYSE:TNK), Rentrak Corporation (NASDAQ:RENT), and Barracuda Networks Inc (NYSE:CUDA) to get a better sense of its popularity.
Now, we’re going to analyze the latest action regarding Endologix, Inc. (NASDAQ:ELGX).
How are hedge funds trading Endologix, Inc. (NASDAQ:ELGX)?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 24% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Tamarack Capital Management, managed by Justin John Ferayorni, holds the biggest position in Endologix, Inc. (NASDAQ:ELGX). Tamarack Capital Management has a $49.7 million position in the stock, comprising 5.9% of its 13F portfolio. Coming in second is James E. Flynn of Deerfield Management, with a $28.8 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompass Israel Englander’s Millennium Management, Eric Bannasch’s Cadian Capital and Brian Ashford-Russell and Tim Woolley’s Polar Capital.