Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Darling Ingredients Inc. (NYSE:DAR) in this article.
Darling Ingredients Inc. (NYSE:DAR) was in 28 hedge funds’ portfolios at the end of September. DAR shareholders have witnessed a decrease in hedge fund interest in recent months. There were 33 hedge funds in our database with DAR 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 RSP Permian Inc (NYSE:RSPP), West Corp (NASDAQ:WSTC), and OM Asset Management PLC (NYSE:OMAM) to gather more data points.
If you’d ask most stock holders, hedge funds are viewed as slow, old financial vehicles of years past. While there are more than 8000 funds trading at the moment, We hone in on the bigwigs of this club, approximately 700 funds. These investment experts manage most of all hedge funds’ total capital, and by keeping track of their matchless investments, Insider Monkey has identified numerous investment strategies that have historically exceeded the broader indices. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points annually for a decade in their back tests.
With all of this in mind, we’re going to take a look at the latest action surrounding Darling Ingredients Inc. (NYSE:DAR).
How have hedgies been trading Darling Ingredients Inc. (NYSE:DAR)?
Heading into Q4, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Gates Capital Management, managed by Jeffrey Gates, holds the number one position in Darling Ingredients Inc. (NYSE:DAR). Gates Capital Management has an $197 million position in the stock, comprising 7.6% of its 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which holds an $90.9 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors with similar optimism encompass Lee Munder’s Lee Munder Capital Group, Ken Fisher’s Fisher Asset Management and Steve Cohen’s Point72 Asset Management.