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.
HFF, Inc. (NYSE:HF) investors should be aware of an increase in hedge fund sentiment recently. At the end of this article we will also compare HF to other stocks, including United Community Banks Inc (NASDAQ:UCBI), Global Blood Therapeutics Inc (NASDAQ:GBT), and Multi-Color Corporation (NASDAQ:LABL) to get a better sense of its popularity.
In the 21st century investor’s toolkit there are a lot of indicators market participants can use to size up their holdings. A pair of the less known indicators are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a superb amount (see the details here).
Now, we’re going to review the key action surrounding HFF, Inc. (NYSE:HF).
How have hedgies been trading HFF, Inc. (NYSE:HF)?
At the end of the third quarter, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jim Simons’ Renaissance Technologies has the number one position in HFF, Inc. (NYSE:HF), worth close to $22.5 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Anand Parekh’s Alyeska Investment Group, with a $18.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other peers that hold long positions contain John Brennan’s Sirios Capital Management, Douglas Dunn and Vincent Soler’s Limestone Value Partners and Israel Englander’s Millennium Management.