You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Is Multi-Color Corporation (NASDAQ:LABL) a healthy stock for your portfolio? Money managers are really in a bullish mood. The number of bullish hedge fund bets that are revealed through the 13F filings moved up by 3 in recent months. There were 7 hedge funds in our database with LABL holdings at the end of the third quarter. At the end of this article we will also compare LABL to other stocks including Orion Engineered Carbons SA (NYSE:OEC), Momo Inc (ADR) (NASDAQ:MOMO), and Adeptus Health Inc (NYSE:ADPT) 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.
With all of this in mind, let’s review the fresh action encompassing Multi-Color Corporation (NASDAQ:LABL).
How are hedge funds trading Multi-Color Corporation (NASDAQ:LABL)?
Heading into the fourth quarter of 2016, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a boost of 75% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards LABL over the last 5 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Joho Capital, led by Robert Karr, holds the number one position in Multi-Color Corporation (NASDAQ:LABL). According to regulatory filings, the fund has a $30.3 million position in the stock, comprising 6% of its 13F portfolio. The second largest stake is held by Third Avenue Management, led by Martin Whitman, which holds a $7.4 million position; 0.3% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish consist of Paul Hondros’s AlphaOne Capital Partners, Ken Fisher’s Fisher Asset Management and Richard Driehaus’s Driehaus Capital. We should note that Joho Capital is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.