With the date of filing the 13F for the reporting period of April1-June 30 having concluded recently, we at Insider Monkey decided to closely examine the portfolio data released by over 700 hedge funds we cover and look for the best opportunities in it for our readers. Having already covered the large-cap stocks that are being hoarded by hedge funds, in this article we decided to elaborate on the four mid-cap stocks whose shares are being hoarded by hedge funds
But before that, let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand, their most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks have beat the market by 65 percentage points, returning over 123% (read more details here).
4. Connecture Inc (NASDAQ:CNXR)
Investors with Long Positions (as of June 30): 9
Aggregate Value of Investors’ Holdings (as of June 30): $71.30 million
Although Connecture Inc (NASDAQ:CNXR) saw a slight quarter-over-quarter drop in popularity from 10 hedge funds that held stakes with an aggregate value of $85.48 million at the end of March, a significant portion or 31.10% of the company’s stock at the end of June was still owned by nine hedge funds from our database. The stock of the web-based platform provider for the health insurance distribution remained flat during the April-June period, but has gone through a correction since late-July. For the second quarter, the company reported a loss of $0.20 per share on revenue of $23.40 million versus a loss of $0.19 per share and revenue of $23.27 million expected by analysts. Jeffrey Jay and David Kroin‘s Great Point Partners was the largest shareholder of Connecture Inc (NASDAQ:CNXR) among the hedge funds covered by us, owning over 4.12 million shares, as of June 30.