There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don’t cover. Because of Carl Icahn and other successful funds’ exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze Lattice Semiconductor (NASDAQ:LSCC) .
Lattice Semiconductor (NASDAQ:LSCC) was in 11 hedge funds’ portfolios at the end of September. LSCC has seen an increase in hedge fund sentiment lately. There were 5 hedge funds in our database with LSCC 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 MedEquities Realty Trust Inc (NYSE:MRT), Northfield Bancorp Inc (NASDAQ:NFBK), and Walker & Dunlop Inc. (NYSE:WD) to gather more data points.
We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.
Keeping this in mind, we’re going to go over the new action encompassing Lattice Semiconductor (NASDAQ:LSCC).
What does the smart money think about Lattice Semiconductor (NASDAQ:LSCC)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a gain of 120% from the previous quarter. By comparison, 11 hedge funds held shares or bullish call options in LSCC heading into this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Quentec Asset Management, led by Ken Hahn, holds the most valuable position in Lattice Semiconductor (NASDAQ:LSCC). Quentec Asset Management has a $13.5 million position in the stock, comprising 1.8% of its 13F portfolio. The second most bullish fund manager is James Dinan of York Capital Management, with a $3.7 million position. Other hedge funds and institutional investors with similar optimism encompass George Soros’ Soros Fund Management, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management, one of the largest hedge funds in the world. We should note that Soros Fund Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.