Is Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 38 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare NCLH to other stocks including Loews Corporation (NYSE:L), Best Buy Co., Inc. (NYSE:BBY), and Agrium Inc. (USA) (NYSE:AGU) to get a better sense of its popularity.
To most stock holders, hedge funds are assumed to be underperforming, outdated financial vehicles of yesteryear. While there are over 8000 funds with their doors open at the moment, We hone in on the aristocrats of this group, about 700 funds. These hedge fund managers handle the majority of the hedge fund industry’s total asset base, and by monitoring their inimitable picks, Insider Monkey has discovered a number of investment strategies that have historically outpaced the broader indices. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, let’s review the recent action surrounding Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH).
How have hedgies been trading Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH)?
At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Roystone Capital Partners, managed by Richard Barrera, holds the most valuable position in Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH). Roystone Capital Partners has an $137.8 million position in the stock, comprising 6.6% of its 13F portfolio. Coming in second is John Armitage of Egerton Capital Limited, with an $118.6 million position; 1.3% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Jacob Doft’s Highline Capital Management, Cliff Asness’s AQR Capital Management and Will Snellings’s Marianas Fund Management.