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Ion Geophysical Corp (IO): Are Hedge Funds Right About This Stock?

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Based on the fact that hedge funds have collectively under-performed the market for several years, it would be easy to assume that their stock picks simply aren’t very good. However, our research shows this not to be the case. In fact, when it comes to their very top picks collectively, they show a strong ability to pick winning stocks. Between November 1, 2014 and October 30 of this year, less than 49% of the stocks in the S&P 500 beat the market. However, hedge funds’ top 30 stock picks from the index had a much higher success rate than this, at 63%. The returns from these 30 stocks also easily bested the broader market, at 9.5% compared to 5.2%, despite there being a few duds in there like Micron and Anadarko (even their collective wisdom isn’t perfect). The results show that there is plenty of merit to imitating the collective wisdom of top investors.

Hedge fund interest in Ion Geophysical Corp (NYSE:IO) shares was flat at the end of last quarter. This is usually a negative indicator, especially considering a drop of 63.55% in the stock value of Ion Geophysical Corp (NYSE:IO). We will discuss more about the hedge funds that held positions in the company, 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 Global Power Equipment Group Inc (NYSE:GLPW), S&W Seed Company (NASDAQ:SANW), and Ocera Therapeutics Inc (NASDAQ:OCRX) to gather more data points.

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Trade (IO) Now!

Today, there are numerous signals stock traders have at their disposal to analyze publicly traded companies. Two of the less utilized signals are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the best money managers can outperform the broader indices by a significant amount (see the details here).

With all of this in mind, we’re going to take a look at the latest action regarding Ion Geophysical Corp (NYSE:IO).

How are hedge funds trading Ion Geophysical Corp (NYSE:IO)?

At the end of September, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies holds the largest position in Ion Geophysical Corp (NYSE:IO). Renaissance Technologies has a $1 million position in the stock, comprising less than 0.1% of its 13F portfolio. The second most bullish fund manager is Robert B. Gillam of McKinley Capital Management, with a $0.5 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions encompass Chuck Royce’s Royce & Associates, Cliff Asness’ AQR Capital Management, and Ken Griffin’s Citadel Investment Group.

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