Have a Look at Hedge Funds’ Recent Moves in These Three Stocks

There is no doubt that some hedge funds’ 13F filings disclose rich trading ideas, but these filings are generally considered delayed and irrelevant. Nevertheless, the research conducted by Insider Monkey provides evidence that these public filings can offer high-potential trading opportunities despite their supposed limitations (i.e. do not reveal short positions, filed within 45 days from the end of each quarter). That said, hedge funds’ 13G and 13D filings can provide more up-to-date insights on top money managers’ most prominent stances and their positions on certain stocks. With this in mind, let’s proceed with a discussion of three 13G filings submitted with the U.S Securities and Exchange Commission by several hedge funds tracked by our team.

Ricky Sandler

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 53 percentage points, returning 102% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

In a freshly-filed 13G, Ricky Sandler’s Eminence Capital L.P. reported owning 7.03 million shares of HomeAway Inc. (NASDAQ:AWAY), up by 3.00 million shares from the position disclosed through the 13F filing for the September quarter. The newly-upped stake accounts for 7.3% of the company’s outstanding common stock. Earlier this month, Expedia Inc. (NASDAQ:EXPE) and HomeAway entered into a definitive cash-and-stock agreement, under which Expedia is set to acquire the operator of the nation’s largest vacation-home rental site for approximately $3.9 billion. If the aforementioned acquisition gets approved, each shareholder of HomeAway Inc. (NASDAQ:AWAY) will receive $10.15 in cash and 0.2064 of an Expedia common share per each HomeAway share owned, which yields a return of roughly $35.47 per share at the time of writing. It is anticipated that the deal will result in strong long-term earnings growth should the shareholders of HomeAway approve the acquisition.

Ricky Sandler
Ricky Sandler
Eminence Capital

The number of smart money investors within our database that owned HomeAway’s stock at the end of the second quarter stood at 31, compared to 32 at the end of the first quarter. These hedge funds accumulated 19.10% of the company’ shares on June 30, while their investments in HomeAway climbed to $563.58 million from $362.49 million during the three-month period. Brian Bares’ Bares Capital Management cut its position in HomeAway Inc. (NASDAQ:AWAY) by 369,231 shares during the September quarter, remaining with 2.69 million shares.

Follow Apple Inc. (NASDAQ:AAPL)

Let’s move on to the next page, where we discuss two separate 13Gs, filed by Point72 Asset Management and Partner Fund Management.

Another 13G recently filed with the SEC reveals that Steve Cohen’s Point72 Asset Management L.P. owns 5.38 million shares of Constellium NV (NYSE:CSTM), representing 5.1% of the company’s shares. This denotes an increase of 4.85 million shares from the fund’s position revealed via its 13F filing for the period of September 30. The shares of the Netherlands-based producer of aluminium semi-products have lost 49% in 2015, but have embarked on a steady uptrend since the beginning of November. Earlier this month, the company reported third quarter revenues of $1.41 billion, which were up by 36% year-over-year, but missed analysts’ estimates of $1.46 billion. Constellium reported a net loss of $0.48 per share, while analysts had anticipated net earnings per share of $0.06.

Steve Cohen
Steve Cohen
Point72 Asset Management

Meanwhile, 25 hedge funds tracked by Insider Monkey had positions in Constellium NV (NYSE:CSTM) at the end of the June quarter, one fund less quarter-over-quarter. The value of the stakes also declined to $390.37 million from $463.30 million during the three-month period. It is also worth pointing out that these 25 investors owned 31.50% of Constellium’s common stock on June 30. Phill Gross and Robert Atchinson’s Adage Capital Management upped its stake in Constellium NV (NYSE:CSTM) by 988,022 shares during the latest quarter to 9.31 million shares.

According to a Schedule 13G filing, Christopher Medlock JamesPartner Fund Management L.P. recently acquired a 1.52 million-share stake in Kura Oncology Inc. (NASDAQ:KURA), which accounts for 7.2% of the company’s outstanding common stock. Just recently, the clinical stage biopharmaceutical company uplisted from the OTCQB venture marketplace to the NASDAQ Global Select Market. However, the stock lost slightly over 7% in today’s trading session, which could somewhat suggest that investors are not overly excited about the company’s future potential.

Christopher Medlock James
Christopher Medlock James
Partner Fund Management

Kura Oncology Inc. (NASDAQ:KURA) focuses on discovering and developing personalized therapeutics aimed at treating solid tumors and blood cancers. In May 2015, Kura Oncology initiated a Phase II clinical trial on its lead product candidate, tipifarnib, in patients who have solid tumors with HRAS mutations. It is worth pointing out that the company is anticipated to incur losses over the next several years and it does not have any approved products, which could make a potential investment in the company quite risky.

Follow Kura Oncology Inc. (NASDAQ:KURA)

Disclosure: None