We can judge whether Ares Capital Corporation (NASDAQ:ARCC) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.
Is Ares Capital Corporation a buy, sell, or hold? Money managers are in a bullish mood. The number of bullish hedge fund bets rose by 5 in recent months. 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 Servicemaster Global Holdings Inc (NYSE:SERV), Gentex Corporation (NASDAQ:GNTX), and Pandora Media Inc (NYSE:P) to gather more data points.
Now, let’s take a peek at the latest action regarding Ares Capital Corporation (NASDAQ:ARCC).
What does the smart money think about Ares Capital Corporation (NASDAQ:ARCC)?
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 28% from the second quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Two Sigma Advisors, managed by John Overdeck and David Siegel, holds the number one position in Ares Capital Corporation (NASDAQ:ARCC). Two Sigma Advisors has a $7.1 million position in the stock, comprising less than 0.1% of its 13F portfolio. The second most bullish fund manager is Millennium Management, led by Israel Englander, holding a $6.6 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Brian Ashford-Russell and Tim Woolley’s Polar Capital and Amy Minella’s Cardinal Capital.