Is Invacare Corporation (NYSE:IVC) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy league graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments (for some reason media paid a ton of attention to Ackman’s gigantic JC Penney and Valeant failures) and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
Is Invacare Corporation (NYSE:IVC) going to take off soon? Prominent investors are in a pessimistic mood. The number of long hedge fund bets decreased by 2 lately. Invacare Corporation (NYSE:IVC) was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. There were 13 hedge funds in our database with Invacare Corporation (NYSE:IVC) holdings at the end of the previous quarter. It may not come as a surprise to the investors tracking the stock performance of the company, as the shares of Invacare Corporation (NYSE:IVC) were down 33.10% during the quarter. We will discuss the hedge funds that held stakes in Invacare Corporation (NYSE:IVC), at the end of the last 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 INTL Fcstone Inc (NASDAQ:INTL), ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS), and Chuy’s Holdings Inc (NASDAQ:CHUY) to gather more data points.
Today, there are numerous tools stock market investors put to use to analyze stocks. A pair of the best tools are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the best investment managers can outpace the broader indices by a very impressive margin (see the details here).
With all of this in mind, let’s review the fresh action encompassing Invacare Corporation (NYSE:IVC).
How are hedge funds trading Invacare Corporation (NYSE:IVC)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 15% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Rutabaga Capital Management, managed by Peter Schliemann, holds the biggest position in Invacare Corporation (NYSE:IVC). Rutabaga Capital Management has a $19.6 million position in the stock, comprising 2.4% of its 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which holds a $19.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that are bullish include Israel Englander’s Millennium Management, Paul Hondros’ AlphaOne Capital Partners, and D E Shaw.