Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Dumping Capstone Turbine Corporation (CPST)

Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.

Is Capstone Turbine Corporation (NASDAQ:CPST) a buy, sell, or hold? The smart money is becoming less hopeful. The number of long hedge fund bets decreased by 2 lately. CPST was in 7 hedge funds’ portfolios at the end of September. There were 9 hedge funds in our database with CPST positions at the end of the previous quarter. At the end of this article we will also compare CPST to other stocks, including Energy Recovery, Inc. (NASDAQ:ERII), ContraFect Corp (NASDAQ:CFRX), and Advent/Claymore Enhanced Growth & Income (NYSE:LCM) to get a better sense of its popularity.

Follow Capstone Turbine Corp (NASDAQ:CPST)
Trade (NASDAQ:CPST) Now!

To most shareholders, hedge funds are seen as slow, outdated investment tools of the past. While there are more than 8000 funds in operation at the moment, Our researchers choose to focus on the aristocrats of this group, around 700 funds. It is estimated that this group of investors watch over bulk of the hedge fund industry’s total capital, and by keeping track of their best equity investments, Insider Monkey has identified several investment strategies that have historically surpassed the market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points annually for a decade in their back tests.

With all of this in mind, let’s check out the key action encompassing Capstone Turbine Corporation (NASDAQ:CPST).

How have hedgies been trading Capstone Turbine Corporation (NASDAQ:CPST)?

Heading into Q4, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -22% from the second quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Thomas E. Claugus’ GMT Capital has the biggest position in Capstone Turbine Corporation (NASDAQ:CPST), worth close to $2.2 million, accounting for 0.1% of its total 13F portfolio. On GMT Capital’s heels is Millennium Management, managed by Israel Englander, which holds a $1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish include Chuck Royce’s Royce & Associates, Philip Hempleman’s Ardsley Partners and D. E. Shaw’s D E Shaw.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.