Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by elite investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.
LKQ Corporation (NASDAQ:LKQ) investors should pay attention to an increase in hedge fund interest of late. LKQ was in 35 hedge funds’ portfolios at the end of September. There were 28 hedge funds in our database with LKQ holdings at the end of the previous quarter. At the end of this article we will also compare LKQ to other stocks including Western Gas Equity Partners LP (NYSE:WGP), Ball Corporation (NYSE:BLL), and Markwest Energy Partners LP (NYSE:MWE) to get a better sense of its popularity.
Keeping this in mind, let’s take a peek at the fresh action regarding LKQ Corporation (NASDAQ:LKQ).
How have hedgies been trading LKQ Corporation (NASDAQ:LKQ)?
At Q3’s end, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 25% from the previous quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Pennant Capital Management, managed by Alan Fournier, holds the most valuable position in LKQ Corporation (NASDAQ:LKQ). Pennant Capital Management has a $133.4 million position in the stock, comprising 2.8% of its 13F portfolio. Coming in second is David Goel and Paul Ferri of Matrix Capital Management, with a $115.1 million position; the fund has 5.3% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions contain Jonathan Auerbach’s Hound Partners, Charles Akre’s Akre Capital Management and Michael R. Weisberg’s Crestwood Capital Management.