Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Prospect Capital Corporation (PSEC) A Good Stock To Buy?

Page 1 of 2

It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 5.2% over the 12-month period ending October 30, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored S&P 500 stocks by the hedge funds monitored by Insider Monkey (as of September 2014) generated a return of 9.5% over the same time span, with 63% of these stocks outperforming the benchmark. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in Prospect Capital Corporation (NASDAQ:PSEC).

Prospect Capital Corporation (NASDAQ:PSEC) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 12 hedge funds’ portfolios at the end of September. At the end of this article we will also compare PSEC to other stocks including Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP), MFA Financial, Inc. (NYSE:MFA), and Sunoco LP (NYSE:SUN) to get a better sense of its popularity.

Follow Prospect Capital Corp (NASDAQ:PSEC)
Trade (NASDAQ:PSEC) Now!

To most shareholders, hedge funds are perceived as unimportant, old financial tools of yesteryear. While there are over an 8000 funds with their doors open today, Our researchers choose to focus on the crème de la crème of this group, around 700 funds. These money managers handle the lion’s share of all hedge funds’ total capital, and by following their finest stock picks, Insider Monkey has come up with various investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points a year for a decade in their back tests.

Keeping this in mind, we’re going to view the key action regarding Prospect Capital Corporation (NASDAQ:PSEC).

Hedge fund activity in Prospect Capital Corporation (NASDAQ:PSEC)

At Q3’s end, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, holds the number one position in Prospect Capital Corporation (NASDAQ:PSEC). Scopia Capital has a $16.1 million position in the stock, comprising 0.3% of its 13F portfolio. The second most bullish fund manager is Mangrove Partners, led by Nathaniel August, holding a $5.4 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Some other peers that are bullish contain David Dreman’s Dreman Value Management, Ken Griffin’s Citadel Investment Group and Robert B. Gillam’s McKinley Capital Management.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!