Is Global Power Equipment Group Inc (NASDAQ:GLPW) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Global Power Equipment Group Inc (NASDAQ:GLPW)’s stock has dropped by 68% year-to-date, but among the funds we track the sentiment remained almost flat during the third quarter, with 14 funds from our database reporting long positions in the company, versus 15 a quarter earlier. 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 or a drop 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 S&W Seed Company (NASDAQ:SANW), Ocera Therapeutics Inc (NASDAQ:OCRX), and AXT Inc (NASDAQ:AXTI) to gather more data points.
To most market participants, hedge funds are viewed as underperforming, old financial vehicles of years past. While there are greater than 8000 funds trading today, Our researchers hone in on the elite of this club, approximately 700 funds. These investment experts direct the lion’s share of the hedge fund industry’s total capital, and by following their first-class equity investments, Insider Monkey has deciphered several investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to take a look at the latest action surrounding Global Power Equipment Group Inc (NASDAQ:GLPW).
What have hedge funds been doing with Global Power Equipment Group Inc (NASDAQ:GLPW)?
At the Q3’s end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decrease of 7% from the second quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Nelson Obus’ Wynnefield Capital has the number one position in Global Power Equipment Group Inc (NASDAQ:GLPW), worth close to $10.2 million, amounting to 4.1% of its total 13F portfolio. Sitting at the No. 2 spot is Phil Frohlich’s Prescott Group Capital Management, with a $3.3 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Peter Schliemann’s Rutabaga Capital Management, Chuck Royce’s Royce & Associates, and D. E. Shaw’s D E Shaw.