It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 7.6% over the 12-month period ending November 21, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored mid-cap stocks by the best performing hedge funds monitored by Insider Monkey generated a return of 18% over the same time span. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in Radiant Logistics Inc (NYSEAMEX:RLGT).
Radiant Logistics Inc (NYSEAMEX:RLGT) was in 7 hedge funds’ portfolios at the end of the third quarter of 2016. RLGT has experienced an increase in support from the world’s most successful money managers lately. There were 6 hedge funds in our database with RLGT positions 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 Aspen Aerogels Inc (NYSE:ASPN), Cadiz Inc (NASDAQ:CDZI), and Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) to gather more data points.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
Now, let’s go over the latest action regarding Radiant Logistics Inc (NYSEAMEX:RLGT).
What does the smart money think about Radiant Logistics Inc (NYSEAMEX:RLGT)?
Heading into the fourth quarter of 2016, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a boost of 17% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in RLGT over the last 5 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management has the number one position in Radiant Logistics Inc (NYSEAMEX:RLGT), worth close to $4.5 million, amounting to 0.5% of its total 13F portfolio. On Nantahala Capital Management’s heels is Anand Parekh of Alyeska Investment Group, with a $2.3 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism encompass Craig A. Drill’s Craig Drill Capital, Chuck Royce’s Royce & Associates and Adam Wright and Gary Kohler’s Blue Clay Capital. We should note that Nantahala Capital Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.