You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Ingram Micro Inc. (NYSE:IM) investors should pay attention to an increase in hedge fund sentiment recently. At the end of this article we will also compare IM to other stocks including W.R. Grace & Co. (NYSE:GRA), WABCO Holdings Inc. (NYSE:WBC), and Casey’s General Stores, Inc. (NASDAQ:CASY) to get a better sense of its popularity.
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Now, we’re going to review the fresh action surrounding Ingram Micro Inc. (NYSE:IM).
How are hedge funds trading Ingram Micro Inc. (NYSE:IM)?
At the end of the third quarter, a total of 41 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from the second quarter of 2016. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Nick Niell’s Arrowgrass Capital Partners has the biggest position in Ingram Micro Inc. (NYSE:IM), worth close to $121 million, amounting to 1.6% of its total 13F portfolio. The second most bullish fund manager is Alec Litowitz and Ross Laser of Magnetar Capital, with a $107.5 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions consist of Robert Emil Zoellner’s Alpine Associates, Richard Driehaus’ Driehaus Capital and D. E. Shaw’s D E Shaw.
As aggregate interest increased, key money managers have been driving this bullishness. Angelo Gordon & Co, managed by John M. Angelo and Michael L. Gordon, established the largest position in Ingram Micro Inc. (NYSE:IM). Angelo Gordon & Co had $19.6 million invested in the company at the end of the quarter. Andre F. Perold’s HighVista Strategies also made a $15.5 million investment in the stock during the quarter. The other funds with new positions in the stock are John Bader’s Halcyon Asset Management, Thomas Steyer’s Farallon Capital, and Israel Englander’s Millennium Management.
Let’s now take a look at hedge fund activity in other stocks similar to Ingram Micro Inc. (NYSE:IM). These stocks are W.R. Grace & Co. (NYSE:GRA), WABCO Holdings Inc. (NYSE:WBC), Casey’s General Stores, Inc. (NASDAQ:CASY), and The Hain Celestial Group, Inc. (NASDAQ:HAIN). This group of stocks’ market caps are closest to IM’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 31.5 hedge funds with bullish positions and the average amount invested in these stocks was $902 million. That figure was $964 million in IM’s case. W.R. Grace & Co. (NYSE:GRA) is the most popular stock in this table. On the other hand Casey’s General Stores, Inc. (NASDAQ:CASY) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Ingram Micro Inc. (NYSE:IM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.