Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
Is Health Insurance Innovations Inc (NASDAQ:HIIQ) the right pick for your portfolio? Prominent investors are unambiguously in an optimistic mood. The number of bullish hedge fund positions grew by 1 recently. HIIQ was in 6 hedge funds’ portfolios at the end of September. There were 5 hedge funds in our database with HIIQ positions at the end of June. At the end of this article we will also compare HIIQ to other stocks including Infinity Pharmaceuticals Inc. (NASDAQ:INFI), SAExploration Holdings, Inc. (NASDAQ:SAEX), and Sunshine Bancorp Inc (NASDAQ:SBCP) 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.
What have hedge funds been doing with Health Insurance Innovations Inc (NASDAQ:HIIQ)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a gain of 20% from the second quarter of 2016. Of the funds tracked by Insider Monkey, J. Carlo Cannell’s Cannell Capital has the number one position in Health Insurance Innovations Inc (NASDAQ:HIIQ), worth close to $6.2 million, corresponding to 2.5% of its total 13F portfolio. Coming in second is Joe Huber of Huber Capital Management, with a $3.8 million position. Some other members of the smart money that hold long positions include Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, Millennium Management, one of the largest hedge funds in the world, and Peter Muller’s PDT Partners. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.