Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.
Is Quanta Services Inc (NYSE:PWR) an outstanding investment now? Investors who are in the know are taking a bearish view. The number of long hedge fund positions decreased by 8 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 Acadia Healthcare Company Inc (NASDAQ:ACHC), Carter’s, Inc. (NYSE:CRI), and Liberty Property Trust (NYSE:LPT) to gather more data points.
Now, let’s take a peek at the recent action surrounding Quanta Services Inc (NYSE:PWR).
What have hedge funds been doing with Quanta Services Inc (NYSE:PWR)?
At the end of the third quarter, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -21% from the second quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ken Griffin’s Citadel Investment Group has the largest position in Quanta Services Inc (NYSE:PWR), worth close to $134.7 million, comprising 0.1% of its total 13F portfolio. The second most bullish fund manager is Ross Margolies of Stelliam Investment Management, with a $84.4 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish encompass William Harnisch’s Peconic Partners LLC, Martin D. Sass’s MD Sass and Bernard Lambilliotte’s Ecofin Ltd.