All U.S. investors who manage more than $100 million in capital are required to file with the SEC their 13F quarterly filings within 45 days of the end of each quarter. One can track and investigate these public filings so as to see where the world’s most successful investors see value, but the latest round of 13F filings is long overdue. Nonetheless, individual investors who still believe in hedge funds’ stock picking abilities can also track their 13D, 13G, and Form 4 filings. As a general rule, these filing provide more up-to-date insights about hedgies’ stances on certain companies. For that reason, this article will discuss three fresh filings submitted with the SEC by several hedge funds tracked by Insider Monkey.
At Insider Monkey, we track hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month (read the details here). Since the official launch of our small-cap strategy in August 2012, it has performed just as predicted, returning over 102% and beating the market by more than 53 percentage points. We believe the data is clear: investors will be better off by focusing on small-cap stocks utilizing hedge fund expertise (while avoiding their high fees at the same time) rather than large-cap stocks.
According to a freshly-amended 13D filing, Robert G. Moses’ RGM Capital LLC owns 3.88 million shares in Guidance Software Inc. (NASDAQ:GUID), which represent 12.68% of the company’s outstanding common stock. This denotes an increase of 340,000 shares from the position revealed through RGM Capital’s 13F filing for the September quarter. The shares of this provider of digital investigative solutions have lost nearly 22% so far in 2015. The company’s EnCase platform represents a network-enabled digital investigative solution that allows corporations and government agencies to search, collect and analyze data across servers, desktops and laptops in order to tackle litigation matters, allegations of fraud, suspicious network activity, among other things. Guidance Software Inc. (NASDAQ:GUID)’s total revenue for the nine-month period ended September 30 reached $79.38 million, down from $80.41 million reported for the same period of 2014. Even though the company’s services revenue and maintenance revenue increased year-on-year, the decline in product revenue was more than enough to offset the higher revenue in the other two reporting segments. However, the company managed to reduce its nine-month net loss to $10.82 million from $11.67 million despite experiencing sluggish revenue growth. A total of 11 hedge funds from our database had stakes in the company at the end of the September quarter, accumulating 16.50% of its outstanding shares. Jim Simons’ Renaissance Technologies lifted its stake in Guidance Software Inc. (NASDAQ:GUID) by 25% during the third quarter to 263,100 shares.
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Let’s move on to the second page of this article, which covers two separate filings submitted by Levin Capital and Fairfax Capital.