Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Vale SA (ADR) (NYSE:VALE).
Vale SA (ADR) (NYSE:VALE) was in 24 hedge funds’ portfolios at the end of September. Vale SA (ADR) (NYSE:VALE) has seen an increase in support from the world’s most elite money managers in recent months. There were 22 hedge funds in our database with Vale SA (ADR) (NYSE:VALE) positions at the end of the previous quarter. At the end of this article, we will also compare Vale SA (ADR) (NYSE:VALE) to other stocks, including Symantec Corporation (NASDAQ:SYMC), NVIDIA Corporation (NASDAQ:NVDA), and FirstEnergy Corp. (NYSE:FE) to get a better sense of its popularity.
In the financial world, there are a multitude of tools investors use to value stocks. Some of the less utilized tools are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the elite fund managers can trounce their index-focused peers by a very impressive amount (see the details here).
With all of this in mind, we’re going to take a look at the new action surrounding Vale SA (ADR) (NYSE:VALE).
What does the smart money think about Vale SA (ADR) (NYSE:VALE)?
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 9% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Oaktree Capital Management, managed by Howard Marks, holds the biggest position in Vale SA (ADR) (NYSE:VALE). Oaktree Capital Management has a $34.2 million position in the stock, comprising 0.5% of its 13F portfolio. On Oaktree Capital Management’s heels is Luminus Management, managed by Jonathan Barrett and Paul Segal, which holds a $22.4 million position; 0.7% of its 13F portfolio is allocated to the company. Remaining members of the smart money that hold long positions contain Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital, John Horseman’s Horseman Capital Management, and Jacob Gottlieb’s Visium Asset Management.