Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.
Is Electronics For Imaging, Inc. (NASDAQ:EFII) a first-rate investment now? Investors who are in the know are turning bullish. The number of long hedge fund bets rose by 2 in recent months. 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 Insys Therapeutics Inc (NASDAQ:INSY), First Financial Bankshares Inc (NASDAQ:FFIN), and Louisiana-Pacific Corporation (NYSE:LPX) to gather more data points.
In the eyes of most shareholders, hedge funds are viewed as underperforming, old investment vehicles of the past. While there are over an 8000 funds trading today, Our researchers look at the elite of this group, approximately 700 funds. These hedge fund managers control bulk of the hedge fund industry’s total capital, and by tracking their matchless investments, Insider Monkey has found many investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Now, we’re going to go over the new action regarding Electronics For Imaging, Inc. (NASDAQ:EFII).
What does the smart money think about Electronics For Imaging, Inc. (NASDAQ:EFII)?
At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, up by 18% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Eric Bannasch’s Cadian Capital has the biggest position in Electronics For Imaging, Inc. (NASDAQ:EFII), worth close to $112.5 million, amounting to 4.1% of its total 13F portfolio. On Cadian Capital’s heels is Daruma Asset Management, managed by Mariko Gordon, which holds a $61.8 million position; the fund has 3.8% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish consist of Clifford Fox’s Columbus Circle Investors, Phill Gross and Robert Atchinson’s Adage Capital Management and Nick Niell’s Arrowgrass Capital Partners.