At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Is SeaWorld Entertainment Inc (NYSE:SEAS) a buy, sell, or hold? Prominent investors are in a pessimistic mood. The number of long hedge fund bets was cut by 2 recently. 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 CYS Investments Inc (NYSE:CYS), Guess?, Inc. (NYSE:GES), and Petrobras Argentina SA ADR (NYSE:PZE) 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.
What does the smart money think about SeaWorld Entertainment Inc (NYSE:SEAS)?
Heading into the fourth quarter of 2016, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 13% drop from one quarter earlier and the fourth-straight quarter with a decline in hedge fund ownership of the struggling company. There were a total of 24 hedge funds with a bullish position in SEAS at the beginning of this year. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, GMT Capital, led by Thomas E. Claugus, holds the largest position in SeaWorld Entertainment Inc (NYSE:SEAS). GMT Capital has a $44.5 million position in the stock. On GMT Capital’s heels is Jericho Capital Asset Management, led by Josh Resnick, holding a $20.6 million position. Some other members of the smart money that are bullish consist of Matthew Hulsizer’s PEAK6 Capital Management, Steven Boyd’s Armistice Capital, and Ken Griffin’s Citadel Investment Group. 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.