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 Scorpio Bulkers Inc (SALT) A Good Stock To Buy?

Page 1 of 2

We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Scorpio Bulkers Inc (NYSE:SALT).

Scorpio Bulkers Inc (NYSE:SALT) has seen a decrease in hedge fund sentiment recently. SALT was in 16 hedge funds’ portfolios at the end of September. There were 22 hedge funds in our database with SALT positions at the end of the previous 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 RealD (NYSE:RLD), Northwest Biotherapeutics, Inc (NASDAQ:NWBO), and ShoreTel, Inc. (NASDAQ:SHOR) to gather more data points.

With all of this in mind, we’re going to analyze the latest action regarding Scorpio Bulkers Inc (NYSE:SALT).

How have hedgies been trading Scorpio Bulkers Inc (NYSE:SALT)?

At Q3’s end, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, a change of -27% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Monarch Alternative Capital, managed by Michael Weinstock, holds the largest position in Scorpio Bulkers Inc (NYSE:SALT). Monarch Alternative Capital has a $57.2 million position in the stock, comprising 20.1% of its 13F portfolio. The second largest stake is held by Kensico Capital, managed by Michael Lowenstein, which holds a $46.2 million position; 1% of its 13F portfolio is allocated to the stock. Other peers with similar optimism comprise Brian Taylor’s Pine River Capital Management, Kevin Michael Ulrich and Anthony Davis’s Anchorage Advisors and Marc Lasry’s Avenue Capital.

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!