It was a rough third quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 7% during the quarter. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by about 14 percentage points between June 25 and October 30, as investors fled less-known quantities for safe havens. This was the case with hedge funds, who we heard were pulling money from the market amid the volatility, which included money from small-cap stocks, which they invest in at a higher rate than other investors. This action contributed to the greater decline in these stocks during the tumultuous period. We will study how this market volatility affected their sentiment towards Ivy High Income Opportunities Fund (NYSE:IVH) during the quarter below.
Is Ivy High Income Opportunities Fund (NYSE:IVH) a buy here? The best stock pickers are taking a bullish view. The number of long hedge fund positions inched up by 1 in recent months. IVH was in 4 hedge funds’ portfolios at the end of September. There were 3 hedge funds in our database with IVH holdings 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 vTv Therapeutics Inc (NASDAQ:VTVT), CAI International Inc (NYSE:CAI), and New Home Company Inc (NYSE:NWHM) to gather more data points.
If you’d ask most investors, hedge funds are viewed as underperforming, outdated financial vehicles of years past. While there are more than an 8000 funds trading at the moment, We look at the leaders of this group, approximately 700 funds. These money managers preside over most of the smart money’s total asset base, and by following their matchless stock picks, Insider Monkey has discovered a few investment strategies that have historically outpaced the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Keeping this in mind, let’s take a peek at the fresh action regarding Ivy High Income Opportunities Fund (NYSE:IVH).
What have hedge funds been doing with Ivy High Income Opportunities Fund (NYSE:IVH)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Mariner Investment Group, managed by William Michaelcheck, holds the number one position in Ivy High Income Opportunities Fund (NYSE:IVH). Mariner Investment Group has a $1.5 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Clint Carlson of Carlson Capital, with a $1.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish encompass Boaz Weinstein’s Saba Capital and Benjamin A. Smith’s Laurion Capital Management.