Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the third quarter. Among them, Valeant and Micron ranked among the top 30 picks and both lost around 20%. Citigroup, which was the third most popular stock, lost 10% amid uncertainty regarding the interest rates. Nevertheless, our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
Partnerre Ltd (NYSE:PRE) was in 24 hedge funds’ portfolios at the end of the third quarter of 2015. PRE investors should pay attention to a decrease in hedge fund interest lately. There were 35 hedge funds in our database with PRE holdings 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 NetSuite Inc (NYSE:N), Lululemon Athletica inc. (NASDAQ:LULU), and FactSet Research Systems Inc. (NYSE:FDS) to gather more data points.
At the moment there are a multitude of metrics stock traders put to use to size up stocks. Some of the most under-the-radar metrics are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the best picks of the top investment managers can trounce their index-focused peers by a significant amount (see the details here).
Now, we’re going to review the fresh action surrounding Partnerre Ltd (NYSE:PRE).
What does the smart money think about Partnerre Ltd (NYSE:PRE)?
Heading into Q4, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -31% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, John Orrico’s Water Island Capital has the most valuable position in Partnerre Ltd (NYSE:PRE), worth close to $171.6 million, comprising 8.8% of its total 13F portfolio. The second largest stake is held by Jim Simons’ Renaissance Technologies, with an $99.1 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Thomas Steyer’s Farallon Capital, Tony Chedraoui’s Tyrus Capital and Clint Carlson’s Carlson Capital.