Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the third quarter. Among them, Valeant and Micron ranked among the top 30 picks and both lost around 20%. Citigroup, which was the third most popular stock, lost 10% amid uncertainty regarding the interest rates. Nevertheless, our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
Is Servicemaster Global Holdings Inc (NYSE:SERV) an attractive investment today? Money managers are reducing their bets on the stock. The number of bullish hedge fund positions were cut by 1 in recent months. SERV was in 34 hedge funds’ portfolios at the end of September. There were 35 hedge funds in our database with SERV positions at the end of the previous quarter. At the end of this article we will also compare SERV to other stocks including Gentex Corporation (NASDAQ:GNTX), Pandora Media Inc (NYSE:P), and FMC Corp (NYSE:FMC) to get a better sense of its popularity.
Now, let’s take a gander at the recent action surrounding Servicemaster Global Holdings Inc (NYSE:SERV).
What have hedge funds been doing with Servicemaster Global Holdings Inc (NYSE:SERV)?
At the end of the third quarter, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jose Fernandez’s Stepstone Group has the most valuable position in Servicemaster Global Holdings Inc (NYSE:SERV), worth close to $174.5 million, accounting for 82.1% of its total 13F portfolio. The second largest stake is held by Gates Capital Management, managed by Jeffrey Gates, which holds a $128.3 million position; 5% of its 13F portfolio is allocated to the stock. Other members of the smart money that hold long positions contain Ken Griffin’s Citadel Investment Group, Peter S. Park’s Park West Asset Management and Ross Margolies’s Stelliam Investment Management.