Hedge Fund Ownership Paints a Positive Picture of Francesca’s Holdings Corp (FRAN)

Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.

Francesca’s Holdings Corp (NASDAQ:FRAN) investors should pay attention to an increase in activity from the world’s largest hedge funds recently, with hedge fund ownership increasing by 3 in Q3. At the end of this article we will also compare FRAN to other stocks including Almost Family, Inc. (NASDAQ:AFAM), Dorchester Minerals LP (NASDAQ:DMLP), and Lindblad Expeditions Holdings Inc (NASDAQ:LIND) to get a better sense of its popularity.

Follow Francesca's Holdings Corp (NASDAQ:FRAN)
Trade NASDAQ:FRAN Now!

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

retail, retailer, store, shopping, shop, cashier, checkout, counter, woman, till, mall, buy, buying, fashion, working, fashionable, cash, pay, leisure, attractive, day, adult,

wavebreakmedia/Shutterstock.com

How are hedge funds trading Francesca’s Holdings Corp (NASDAQ:FRAN)?

At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a rise of 14% from the previous quarter. While ownership of the stock remains slightly below its level from six months earlier, it’s 33% higher than it was a year ago. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
fran
Of the funds tracked by Insider Monkey, Daruma Asset Management, managed by Mariko Gordon, holds the biggest position in Francesca’s Holdings Corp (NASDAQ:FRAN). Daruma Asset Management has a $55.7 million position in the stock, comprising 3.4% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $23.4 million position. Other peers that are bullish contain Matthew A. Weatherbie’s Weatherbie Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.