Is Dover Downs Gaming & Entertainment, Inc. (DDE) Going to Burn These Hedge Funds?

Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.

Hedge fund interest in Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) shares was flat at the end of last quarter. This is usually a negative indicator. 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 On Track Innovations Ltd. (USA) (NASDAQ:OTIV), Cogentix Medical Inc (NASDAQ:CGNT), and Summer Infant, Inc. (NASDAQ:SUMR) to gather more data points.

To the average investor, there are many indicators stock traders use to appraise publicly traded companies. Some of the most useful indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass their index-focused peers by a significant amount (see the details here).

With all of this in mind, let’s take a peek at the fresh action regarding Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE).

What does the smart money think about Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE)?

At the end of September, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, flat over the second quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Renaissance Technologies has the number one position in Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE), worth close to $0.3 million, comprising less than 0.1% of its total 13F portfolio. Coming in second is Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk of GRT Capital Partners, with a $0.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors with similar optimism contain Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management, and Mario Gabelli’s GAMCO Investors.