Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.
PBF Energy Inc (NYSE:PBF) was in 27 hedge funds’ portfolios at the end of September. PBF has seen a decrease in activity from the world’s largest hedge funds lately. There were 32 hedge funds in our database with PBF 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 AllianceBernstein Holding LP (NYSE:AB), Platform Specialty Products Corp (NYSE:PAH), and Lancaster Colony Corp. (NASDAQ:LANC) to gather more data points.
To most market participants, hedge funds are perceived as worthless, outdated investment vehicles of the past. While there are greater than 8000 funds in operation at the moment, Our experts look at the crème de la crème of this club, approximately 700 funds. These hedge fund managers watch over bulk of all hedge funds’ total capital, and by monitoring their top stock picks, Insider Monkey has figured out several investment strategies that have historically surpassed the broader indices. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Now, let’s view the latest action encompassing PBF Energy Inc (NYSE:PBF).
What have hedge funds been doing with PBF Energy Inc (NYSE:PBF)?
At the Q3’s end, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of -16% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Seth Klarman’s Baupost Group has the most valuable position in PBF Energy Inc (NYSE:PBF), worth close to $311.2 million, amounting to 5.2% of its total 13F portfolio. On Baupost Group’s heels is D E Shaw, managed by D. E. Shaw, which holds an $150.6 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish encompass Robert Joseph Caruso’s Select Equity Group, John Griffin’s Blue Ridge Capital, and Jim Simons’ Renaissance Technologies.