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.
Asbury Automotive Group, Inc. (NYSE:ABG) investors should pay attention to an increase in hedge fund interest recently. 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 Teekay Corporation (NYSE:TK), CyrusOne Inc (NASDAQ:CONE), and Monro Muffler Brake Inc (NASDAQ:MNRO) to gather more data points.
In the 21st century investor’s toolkit there are several gauges stock traders can use to appraise stocks. A pair of the most underrated gauges are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the S&P 500 by a healthy margin (see the details here).
Keeping this in mind, let’s take a peek at the key action surrounding Asbury Automotive Group, Inc. (NYSE:ABG).
Hedge fund activity in Asbury Automotive Group, Inc. (NYSE:ABG)
At Q3’s end, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 29% from the second quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, LionEye Capital Management, managed by Stephen V. Raneri, holds the largest position in Asbury Automotive Group, Inc. (NYSE:ABG). At the end of the quarter, the fund had a $209.3 million position in the stock, comprising 8.7% of its 13F portfolio. Sitting at the No. 2 spot is MSD Capital, led by Glenn Fuhrman and John Phelan, holding a $180.6 million position; 24.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions consist of Ricky Sandler’s Eminence Capital, Jason Karp’s Tourbillon Capital Partners and Paul Orlin and Alex Porter’s Amici Capital.