World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
K2M Group Holdings Inc (NASDAQ:KTWO) was in 11 hedge funds’ portfolios at the end of September. KTWO has seen an increase in enthusiasm from smart money lately. There were 9 hedge funds in our database with KTWO positions at the end of the previous quarter. At the end of this article we will also compare KTWO to other stocks, including James River Group Holdings Ltd (NASDAQ:JRVR) and Kforce Inc. (NASDAQ:KFRC), to get a better sense of its popularity.
Today there are many methods shareholders can use to value stocks. Two of the most useful methods are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the best hedge fund managers can outpace their index-focused peers by a superb margin (see the details here).
Now, we’re going to review the key action encompassing K2M Group Holdings Inc (NASDAQ:KTWO).
How are hedge funds trading K2M Group Holdings Inc (NASDAQ:KTWO)?
At the Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of 22% from the second quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Highland Capital Management, managed by James Dondero, holds the number one position in K2M Group Holdings Inc (NASDAQ:KTWO). Highland Capital Management has a $12.8 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Point72 Asset Management, led by Steve Cohen, holding a $9.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish encompass Clifford Fox’s Columbus Circle Investors, Israel Englander’s Millennium Management and Richard Driehaus’ Driehaus Capital.