Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the third quarter. Among them, Valeant and Micron ranked among the top 30 picks and both lost around 20%. Citigroup, which was the third most popular stock, lost 10% amid uncertainty regarding the interest rates. Nevertheless, our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
Is Aceto Corporation (NASDAQ:ACET) the right investment to pursue these days? The smart money is turning bullish. The number of bullish hedge fund bets inched up by 6 recently. ACET was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. There were 5 hedge funds in our database with ACET 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 Hanmi Financial Corp (NASDAQ:HAFC), LHC Group, Inc. (NASDAQ:LHCG), and WSFS Financial Corporation (NASDAQ:WSFS) to gather more data points.
In today’s marketplace there are many tools investors have at their disposal to assess their stock investments. A couple of the most under-the-radar tools are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can beat the market by a solid amount (see the details here).
Keeping this in mind, let’s take a glance at the recent action encompassing Aceto Corporation (NASDAQ:ACET).
How are hedge funds trading Aceto Corporation (NASDAQ:ACET)?
At the Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 120% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Chuck Royce’s Royce & Associates has the most valuable position in Aceto Corporation (NASDAQ:ACET), worth close to $23.6 million, comprising 0.1% of its total 13F portfolio. The second most bullish fund is Renaissance Technologies, with a $10.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. The remaining members of the smart money with similar optimism encompass Israel Englander’s Millennium Management, Ken Fisher’s Fisher Asset Management and Richard Driehaus’ Driehaus Capital.