Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors’ favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the 12-month period ending October 30. However, 63% of hedge funds’ top 30 stock picks from the index did beat the market, and returned nearly twice as much on average as the index. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone.
Is Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) the right pick for your portfolio? Prominent investors are in an optimistic mood. The number of bullish hedge fund positions increased by 1 lately. SSRI was in 14 hedge funds’ portfolios at the end of September. There were 13 hedge funds in our database with SSRI holdings at the end of the previous quarter. At the end of this article we will also compare SSRI to other stocks including Tarena International Inc(ADR) (NASDAQ:TEDU), Winthrop Realty Trust (NYSE:FUR), and CBIZ, Inc. (NYSE:CBZ) to get a better sense of its popularity.
Today there are a large number of signals investors put to use to size up stocks. A couple of the most underrated signals are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a very impressive amount (see the details here).
With all of this in mind, we’re going to take a gander at the key action encompassing Silver Standard Resources Inc. (USA) (NASDAQ:SSRI).
What does the smart money think about Silver Standard Resources Inc. (USA) (NASDAQ:SSRI)?
At Q3’s end, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, David Iben’s Kopernik Global Investors has the number one position in Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), worth close to $19.9 million, amounting to 4.2% of its total 13F portfolio. Coming in second is Peter Franklin Palmedo of Sun Valley Gold, with a $10.8 million position; 0.7% of its 13F portfolio is allocated to the company. Some other members of the smart money with similar optimism contain Jim Simons’s Renaissance Technologies, Michael Platt and William Reeves’s BlueCrest Capital Mgmt. and D. E. Shaw’s D E Shaw.
Now, key hedge funds have jumped into Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) headfirst. BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, assembled a position in Silver Standard Resources Inc. (USA) (NASDAQ:SSRI). BlueCrest Capital Mgmt. had $1.6 million invested in the company at the end of the quarter. Thomas Bailard’s Bailard Inc also made a $0.5 million investment in the stock during the quarter. The only other fund with a new position in the stock is Cliff Asness’s AQR Capital Management.
On the next page, we analyze hedge fund activity of similarly priced stocks to get a better feel on what the elite funds think of Silver Standard Resources Inc. (USA) (NASDAQ:SSRI).