Forbes Energy Services Ltd. (FES): Are Hedge Funds Right About This Stock?

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The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Forbes Energy Services Ltd. (NASDAQ:FES) based on those filings.

Forbes Energy Services Ltd. (NASDAQ:FES) shareholders have witnessed a decrease in enthusiasm from smart money lately. FES was in 4 hedge funds’ portfolios at the end of the third quarter of 2015. There were 5 hedge funds in our database with FES positions at the end of the previous quarter. At the end of this article we will also compare FES to other stocks including MELA Sciences Inc (NASDAQ:MELA), Wave Systems Corp. (NASDAQ:WAVX), and Essex Rental Corp. (NASDAQ:ESSX) to get a better sense of its popularity.

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According to most market participants, hedge funds are assumed to be unimportant, old investment vehicles of yesteryear. While there are more than 8,000 funds trading at the moment, Our researchers look at the upper echelon of this group, around 700 funds. These investment experts administer the lion’s share of the smart money’s total asset base, and by observing their finest picks, Insider Monkey has discovered a number of investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

Keeping this in mind, we’re going to check out the fresh action regarding Forbes Energy Services Ltd. (NASDAQ:FES).

What have hedge funds been doing with Forbes Energy Services Ltd. (NASDAQ:FES)?

At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Steel Partners, managed by Warren Lichtenstein, holds the biggest position in Forbes Energy Services Ltd. (NASDAQ:FES). Steel Partners has a $1.9 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Richard C. Patton of Courage Capital, with a $0.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions contain Jim Simons’s Renaissance Technologies, and David Steinberg’s MAST Capital.

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