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.