The third quarter was a rough one for most investors, as fears of an interest rate hike in the U.S, a weakening economy in China, and a stagnant Europe, weighed heavily on the minds of investors. Both the S&P 500 and Russell 2000 sank as a result, with the Russell 2000, which is composed of smaller companies, being hit especially hard. This was primarily due to hedge funds, which are big supporters of small-cap stocks, pulling some of their capital out of the volatile markets during this time. Let’s look at how this market volatility affected the sentiment of hedge funds towards Famous Dave’s of America, Inc. (NASDAQ:DAVE), and what that likely means for the prospects of the company and its stock.
Hedge fund interest in Famous Dave’s of America, Inc. shares was flat at the end of last quarter. This is usually a negative indicator. 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 ADMA Biologics Inc (NASDAQ:ADMA), Taseko Mines Limited (USA) (NYSEMKT:TGB), and XOMA Corp (NASDAQ:XOMA) to gather more data points.
In the 21st century investor’s toolkit there are several formulas investors use to appraise their holdings. Some of the less utilized formulas are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the best money managers can trounce the market by a solid amount (see the details here).
Keeping this in mind, let’s take a peek at the new action regarding Famous Dave’s of America, Inc. (NASDAQ:DAVE).
What does the smart money think about Famous Dave’s of America, Inc. (NASDAQ:DAVE)?
When looking at the institutional investors followed by Insider Monkey, Charles Davidson’s Wexford Capital has the most valuable position in Famous Dave’s of America, Inc. (NASDAQ:DAVE), worth close to $17.2 million, comprising 3.3% of its total 13F portfolio. The second most bullish fund manager is LionEye Capital Management, led by Stephen V. Raneri, holding a $16 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other peers that are bullish contain Jonathan Lennon’s Pleasant Lake Partners, Adam Wright and Gary Kohler’s Blue Clay Capital and Jim Simons’ Renaissance Technologies.