We can judge whether FIRSTSERVICE CORPORATION (NASDAQ:FSV) 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.
FIRSTSERVICE CORPORATION (NASDAQ:FSV) investors should pay attention to an increase in activity from the world’s largest hedge funds 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 Axiall Corp (NYSE:AXLL), Benchmark Electronics, Inc. (NYSE:BHE), and Emergent Biosolutions Inc (NYSE:EBS) to gather more data points.
To most shareholders, hedge funds are assumed to be underperforming, outdated financial vehicles of yesteryear. While there are over 8000 funds in operation at present, we look at the aristocrats of this club, around 700 funds. Most estimates calculate that this group of people watch over the lion’s share of the hedge fund industry’s total capital, and by paying attention to their inimitable stock picks, Insider Monkey has unsheathed many investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, let’s take a gander at the recent action surrounding FirstService Corp (NASDAQ:FSV).
Hedge fund activity in FirstService Corp (NASDAQ:FSV)
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 67% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Weatherbie Capital, managed by Matthew A. Weatherbie, holds the biggest position in FirstService Corp (NASDAQ:FSV). Weatherbie Capital has a $26 million position in the stock, comprising 3% of its 13F portfolio. On Weatherbie Capital’s heels is Lionstone Capital Management, managed by Leon Lowenstein, which holds a $23.5 million position; 12.3% of its 13F portfolio is allocated to the stock. Other members of the smart money that hold long positions encompass Renaissance Technologies, Robert B. Gillam’s McKinley Capital Management, and Michael Kaufman’s MAK Capital One.