The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Straight Path Communications Inc (NYSEMKT:STRP).
Straight Path Communications Inc (NYSEMKT:STRP) is not a very popular stock among the funds we track, but it witnessed a slight increase in hedge fund interest during the third quarter. However, the stock has lost 67% since the end of September. Nevertheless, 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 Callon Petroleum Company (NYSE:CPE), E Commerce China Dangdang Inc (ADR) (NYSE:DANG), and EPIQ Systems, Inc. (NASDAQ:EPIQ) to gather more data points.
Follow Straight Path Communications Inc. (NYSEMKT:STRP)
Follow Straight Path Communications Inc. (NYSEMKT:STRP)
In the eyes of most stock holders, hedge funds are seen as underperforming, old financial vehicles of years past. While there are greater than an 8000 funds trading at the moment, We look at the leaders of this club, around 700 funds. Most estimates calculate that this group of people command most of the smart money’s total capital, and by following their top picks, Insider Monkey has determined various investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, let’s take a gander at the latest action encompassing Straight Path Communications Inc (NYSEMKT:STRP).
How have hedgies been trading Straight Path Communications Inc (NYSEMKT:STRP)?
Heading into Q4, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, up by 8% on the quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Point State Capital, managed by Zach Schreiber, holds the largest position in Straight Path Communications Inc (NYSEMKT:STRP). Point State Capital has a $20.2 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is Archer Capital Management, managed by Eric Edidin and Josh Lobel, which holds a $15.2 million position; 2.2% of its 13F portfolio is allocated to the stock. Remaining professional money managers that hold long positions comprise Andy Rebak and Michael Scott’s Farmstead Capital Management, Andre F. Perold’s HighVista Strategies, and Jim Simons’ Renaissance Technologies.
As one would reasonably expect, specific money managers have jumped into Straight Path Communications Inc (NYSEMKT:STRP) headfirst. Point State Capital initiated the largest position in Straight Path Communications Inc (NYSEMKT:STRP). HighVista Strategies also initiated a $4.7 million position during the quarter. The following funds were also among the new STRP investors: Israel Englander’s Millennium Management and Glenn Russell Dubin’s Highbridge Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Straight Path Communications Inc (NYSEMKT:STRP) but similarly valued. These stocks are Callon Petroleum Company (NYSE:CPE), E Commerce China Dangdang Inc (ADR) (NYSE:DANG), EPIQ Systems, Inc. (NASDAQ:EPIQ), and Boot Barn Holdings Inc (NYSE:BOOT). This group of stocks’ market values are closest to STRP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CPE | 15 | 36218 | 5 |
| DANG | 8 | 19471 | -6 |
| EPIQ | 14 | 86375 | -1 |
| BOOT | 7 | 31754 | -4 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was $66 million in STRP’s case. Callon Petroleum Company (NYSE:CPE) is the most popular stock in this table. On the other hand Boot Barn Holdings Inc (NYSE:BOOT) is the least popular one with only 7 bullish hedge fund positions. Straight Path Communications Inc (NYSEMKT:STRP) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CPE might be a better candidate to consider a long position.
