Based on the fact that hedge funds have collectively underperformed the market for several years, it would be easy to assume that their stock picks simply aren’t very good. However, our research shows this not to be the case. In fact, when it comes to their very top picks collectively, they show a strong ability to pick winning stocks. Between November 1, 2014 and October 30 of this year, less than 49% of the stocks in the S&P 500 beat the market. However, hedge funds’ top 30 stock picks from the index had a much higher success rate than this, at 63%. The returns from these 30 stocks also easily bested the broader market, at 9.5% compared to 5.2%, despite there being a few duds in there like Micron and Anadarko (even their collective wisdom isn’t perfect). The results show that there is plenty of merit to imitating the collective wisdom of top investors.
Is Diana Containerships Inc (NASDAQ:DCIX) going to take off soon? The best stock pickers are becoming less hopeful. The number of bullish hedge fund bets were cut by 3 lately. DCIX was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. There were 7 hedge funds in our database with DCIX holdings at the end of the previous quarter. 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 Comstock Resources Inc (NYSE:CRK), PRGX Global Inc (NASDAQ:PRGX), and Camtek LTD. (NASDAQ:CAMT) to gather more data points.
In the eyes of most shareholders, hedge funds are assumed to be worthless, outdated financial tools of the past. While there are more than 8000 funds in operation today, Our researchers choose to focus on the aristocrats of this group, around 700 funds. It is estimated that this group of investors control the majority of the smart money’s total capital, and by keeping an eye on their highest performing equity investments, Insider Monkey has found many investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, let’s take a gander at the key action regarding Diana Containerships Inc (NASDAQ:DCIX).
How are hedge funds trading Diana Containerships Inc (NASDAQ:DCIX)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -43% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, 12 West Capital Management, managed by Joel Ramin, holds the most valuable position in Diana Containerships Inc (NASDAQ:DCIX). 12 West Capital Management has a $24.2 million position in the stock, comprising 3.5% of its 13F portfolio. On 12 West Capital Management’s heels is Jim Simons of Renaissance Technologies, with a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that hold long positions comprise Richard Mashaal’s Rima Senvest Management, and Ken Griffin’s Citadel Investment Group.