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: Kinder Morgan Inc (NYSE:KMI).
Kinder Morgan Inc (NYSE:KMI) was in 67 hedge funds’ portfolios at the end of the fourth quarter of 2015. KMI has seen a decrease in hedge fund sentiment recently. There were 72 hedge funds in our database with KMI holdings at the end of the previous quarter. At the end of this article we will also compare KMI to other stocks including Deutsche Bank AG (USA) (NYSE:DB), Twenty-First Century Fox Inc (NASDAQ:FOXA), and eBay Inc (NASDAQ:EBAY) to get a better sense of its popularity.
According to most shareholders, hedge funds are assumed to be underperforming, outdated financial vehicles of yesteryear. While there are greater than 8000 funds trading at present, We hone in on the elite of this group, about 700 funds. These money managers oversee the lion’s share of the hedge fund industry’s total capital, and by following their highest performing picks, Insider Monkey has unsheathed numerous investment strategies that have historically surpassed the market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Amid a drop in oil prices, Kinder Morgan’s stock has dropped by more than 52% over the last year. However, since the beginning of the year, the stock. However, since the beginning of the year, the shares have advanced by 25% amid Warren Buffett’s Berkshire Hathaway reporting a new position in the company as of the end of December.