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: Brink’s Company (NYSE:BCO).
Brink’s Company (NYSE:BCO) was in 17 hedge funds’ portfolios at the end of the third quarter of 2015. BCO has experienced a decrease in hedge fund sentiment in recent months. There were 23 hedge funds in our database with BCO positions at the end of the previous quarter. 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 RealPage, Inc. (NASDAQ:RP), Drew Industries, Inc. (NYSE:DW), and Renasant Corp. (NASDAQ:RNST) to gather more data points.
Keeping this in mind, let’s analyze the latest action surrounding Brink’s Company (NYSE:BCO).
What have hedge funds been doing with Brink’s Company (NYSE:BCO)?
Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -26% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jeffrey Smith’s Starboard Value LP has the biggest position in Brink’s Company (NYSE:BCO), worth close to $123.7 million, comprising 2.8% of its total 13F portfolio. On Starboard Value LP’s heels is Scopia Capital, led by Matt Sirovich and Jeremy Mindich, holding a $104.6 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Remaining peers that hold long positions comprise Mario Gabelli’s GAMCO Investors, Dan Friedberg’s Sagard Capital Partners Management Corp and David Dreman’s Dreman Value Management.