The market has been volatile as the Federal Reserve winds down its easy money policies. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25th and the end of October. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure, and the funds’ movements is one of the reasons why the major indexes have retraced. In this article, we analyze what the smart money thinks of Garmin Ltd. (NASDAQ:GRMN) and find out how it is affected by hedge funds’ moves.
Garmin Ltd. (NASDAQ:GRMN) has seen a decrease in enthusiasm from smart money in recent months. 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 Spirit AeroSystems Holdings, Inc. (NYSE:SPR), Envision Healthcare Holdings Inc (NYSE:EVHC), and Harman International Industries Inc./DE/ (NYSE:HAR) to gather more data points.
In the eyes of most investors, hedge funds are assumed to be unimportant, outdated investment vehicles of the past. While there are more than 8,000 funds in operation at present, Our researchers hone in on the top tier of this club, approximately 700 funds. Most estimates calculate that this group of people preside over bulk of the hedge fund industry’s total capital, and by watching their matchless investments, Insider Monkey has formulated numerous investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, let’s take a glance at the fresh action surrounding Garmin Ltd. (NASDAQ:GRMN).
Hedge fund activity in Garmin Ltd. (NASDAQ:GRMN)
At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jim Simons’ Renaissance Technologies has the largest position in Garmin Ltd. (NASDAQ:GRMN), worth close to $47.3 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by David Einhorn of Greenlight Capital, with an $22.4 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish include Joel Greenblatt’s Gotham Asset Management, David Harding’s Winton Capital Management and Cliff Asness’ AQR Capital Management.