The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards IntelSat SA (NYSE:I) .
IntelSat SA (NYSE:I) has experienced an increase in enthusiasm from smart money in recent months. I was in 15 hedge funds’ portfolios at the end of September. There were 14 hedge funds in our database with I holdings at the end of the previous quarter. 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 Advaxis, Inc. (NASDAQ:ADXS), Digi International Inc. (NASDAQ:DGII), and AV Homes Inc (NASDAQ:AVHI) to gather more data points.
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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.
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What does the smart money think about IntelSat SA (NYSE:I)?
Heading into the fourth quarter of 2016, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 7% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards I over the last 5 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, private equity firm Silver Lake Partners has the number one position in IntelSat SA (NYSE:I), worth close to $38.4 million. The second most bullish fund manager is Arbiter Partners Capital Management, led by Paul J. Isaac, holding a $15.1 million position; 1.8% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors with similar optimism encompass Rob Citrone’s Discovery Capital Management, Zach Schreiber’s Point State Capital and Matt Sirovich and Jeremy Mindich’s Scopia Capital. We should note that Arbiter Partners Capital Management 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.
As one would reasonably expect, key hedge funds were leading the bulls’ herd. Centerbridge Partners, led by Mark T. Gallogly, established the largest position in IntelSat SA (NYSE:I). Centerbridge Partners had $0.4 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $0.3 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.
Let’s also examine hedge fund activity in other stocks similar to IntelSat SA (NYSE:I). These stocks are Advaxis, Inc. (NASDAQ:ADXS), Digi International Inc. (NASDAQ:DGII), AV Homes Inc (NASDAQ:AVHI), and Consolidated-Tomoka Land Co. (NYSEAMEX:CTO). This group of stocks’ market values are closest to I’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ADXS | 14 | 116264 | -3 |
| DGII | 15 | 21063 | -1 |
| AVHI | 3 | 23481 | -1 |
| CTO | 8 | 121400 | -1 |
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $92 million in I’s case. Digi International Inc. (NASDAQ:DGII) is the most popular stock in this table. On the other hand AV Homes Inc (NASDAQ:AVHI) is the least popular one with only 3 bullish hedge fund positions. IntelSat SA (NYSE:I) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DGII might be a better candidate to consider taking a long position in.
Disclosure: None
