Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.
Is Liberty Media Corporation – Series C Liberty Media (NASDAQ:LMCK) the right investment to pursue these days? The best stock pickers are getting less bullish. The number of long hedge fund positions decreased by 1 in recent months. At the end of this article we will also compare LMCK to other stocks including EQT Midstream Partners LP (NYSE:EQM), Axalta Coating Systems Ltd (NYSE:AXTA), and Westinghouse Air Brake Technologies Corp (NYSE:WAB) 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 Liberty Media Corporation – Series C Liberty Media (NASDAQ:LMCK)?
Heading into the fourth quarter of 2016, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 5% slide from the second quarter of 2016, and the third-straight quarter with a decline. Smart money ownership has crumbled by more than 50% in the last 3 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Mason Hawkins’ Southeastern Asset Management has the number one position in Liberty Media Corporation – Series C Liberty Media (NASDAQ:LMCK), worth close to $233.6 million, amounting to 2.2% of its total 13F portfolio. Sitting at the No. 2 spot is Ashe Capital, led by William Crowley, William Harker, and Stephen Blass, holding a $139.3 million position; the fund has 14.6% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish encompass Warren Buffett’s Berkshire Hathaway, Michael Lowenstein’s Kensico Capital and Crispin Odey’s Odey Asset Management Group.