Fidelity & Guaranty Life (FGL): Are Hedge Funds Right About This Stock?

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Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Fidelity & Guaranty Life (NYSE:FGL).

Fidelity & Guaranty Life (NYSE:FGL) was in 11 hedge funds’ portfolios at the end of September. FGL shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 14 hedge funds in our database with FGL 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 Alder Biopharmaceuticals Inc (NASDAQ:ALDR), AMN Healthcare Services, Inc. (NYSE:AHS), and Vishay Intertechnology (NYSE:VSH) to gather more data points.

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If you’d ask most market participants, hedge funds are seen as worthless, old investment tools of the past. While there are more than 8000 funds trading at the moment, Our experts look at the masters of this group, about 700 funds. These money managers command the lion’s share of all hedge funds’ total asset base, and by observing their top stock picks, Insider Monkey has determined a few investment strategies that have historically outperformed the S&P 500 index. 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, we’re going to view the recent action encompassing Fidelity & Guaranty Life (NYSE:FGL).

What does the smart money think about Fidelity & Guaranty Life (NYSE:FGL)?

At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of -21% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Tourbillon Capital Partners, managed by Jason Karp, holds the biggest position in Fidelity & Guaranty Life (NYSE:FGL). Tourbillon Capital Partners has a $17 million position in the stock, comprising 0.4% of its 13F portfolio. On Tourbillon Capital Partners’s heels is Andrew Goldman of Seven Locks Capital Management, with a $12 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions encompass Ron Bobman’s Capital Returns Management, Jonathan Soros’s JS Capital and Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital.

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