There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don’t cover. Because of Carl Icahn and other elite funds’ exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze Lumber Liquidators Holdings Inc (NYSE:LL).
Lumber Liquidators Holdings Inc (NYSE:LL) investors should be aware of a decrease in enthusiasm from smart money of late. 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 Titan International Inc (NYSE:TWI), Hometrust Bancshares Inc (NASDAQ:HTBI), and Kimball International Inc (NASDAQ:KBAL) to gather more data points.
Now, let’s analyze the key action surrounding Lumber Liquidators Holdings Inc (NYSE:LL).
What have hedge funds been doing with Lumber Liquidators Holdings Inc (NYSE:LL)?
At Q3’s end, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, QVT Financial, managed by Daniel Gold, holds the number one position in Lumber Liquidators Holdings Inc (NYSE:LL). QVT Financial has a $11.9 million position in the stock, comprising 0.4% of its 13F portfolio. The second most bullish fund manager is MAK Capital One, led by Michael Kaufman, holding a $3.5 million position; 3% of its 13F portfolio is allocated to the company. Remaining members of the smart money that are bullish comprise Ken Griffin’s Citadel Investment Group, Charles Paquelet’s Skylands Capital and Michael Zimmerman’s Prentice Capital Management.