The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Daqo New Energy Corp (NYSE:DQ).
Is Daqo New Energy Corp (NYSE:DQ) a buy right now? The smart money is surely betting on the stock. The number of bullish hedge fund positions that are disclosed in regulatory 13F filings moved up by 2 in recent months. DQ was in 6 hedge funds’ portfolios at the end of September. There were 4 hedge funds in our database with DQ holdings at the end of June. At the end of this article we will also compare DQ to other stocks including New Home Company Inc (NYSE:NWHM), Great Panther Silver Ltd (USA) (NYSEAMEX:GPL), and Destination XL Group Inc (NASDAQ:DXLG) to get a better sense of its popularity.
We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.
How are hedge funds trading Daqo New Energy Corp (NYSE:DQ)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 50% increase from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards DQ over the last 5 quarters, which has fluctuated back and forth between 4 and 6 funds owning the stock in 2016. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Quentec Asset Management, led by Ken Hahn, holds the largest position in Daqo New Energy Corp (NYSE:DQ). Quentec Asset Management has a $17.9 million position in the stock, comprising 2.4% of its 13F portfolio. On Quentec Asset Management’s heels is Luminus Management, led by Jonathan Barrett and Paul Segal, which holds a $6.2 million position. Other members of the smart money that are bullish comprise Brian Taylor’s Pine River Capital Management, Chuck Royce’s Royce & Associates, and Louis Navellier’s Navellier & Associates. We should note that Luminus 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-micro-cap stocks.