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.
Tanger Factory Outlet Centers Inc. (NYSE:SKT) shareholders have witnessed a decrease in support from the world’s most successful money managers recently. SKT was in 10 hedge funds’ portfolios at the end of September. There were 14 hedge funds in our database with SKT 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 Teledyne Technologies Incorporated (NYSE:TDY), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), and Aspen Technology, Inc. (NASDAQ:AZPN) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Hedge fund activity in Tanger Factory Outlet Centers Inc. (NYSE:SKT)
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 29% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SKT over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Jeffrey Furber’s AEW Capital Management has the largest position in Tanger Factory Outlet Centers Inc. (NYSE:SKT), worth close to $56.9 million, accounting for 1.2% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, one of the largest hedge funds in the world; with a $47.3 million position. Remaining hedge funds and institutional investors with similar optimism comprise Ric Dillon’s Diamond Hill Capital, Greg Poole’s Echo Street Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.