Here is What Hedge Funds Think About Gener8 Maritime Inc (GNRT)

You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.

Gener8 Maritime Inc (NYSE:GNRT) has seen a decrease in activity from the world’s largest hedge funds in recent months. GNRT was in 16 hedge funds’ portfolios at the end of September. There were 17 hedge funds in our database with GNRT positions at the end of the previous quarter. At the end of this article we will also compare GNRT to other stocks including PROS Holdings, Inc. (NYSE:PRO), Tredegar Corporation (NYSE:TG), and Clovis Oncology Inc (NASDAQ:CLVS) to get a better sense of its popularity.

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.

How are hedge funds trading Gener8 Maritime Inc (NYSE:GNRT)?

At Q3’s end, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a fall of 6% from the second quarter of 2016. On the other hand, there were a total of 18 hedge funds with a bullish position in GNRT at the beginning of this year. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Oaktree Capital Management, led by Howard Marks, holds the number one position in Gener8 Maritime Inc (NYSE:GNRT). Oaktree Capital Management has a $66.8 million position in the stock. The second most bullish fund manager is Blue Mountain Capital, led by Andrew Feldstein and Stephen Siderow, holding a $40.2 million position. Some other professional money managers that hold long positions comprise Marc Lasry’s Avenue Capital, Michael Weinstock’s Monarch Alternative Capital and Richard Mashaal’s Rima Senvest Management. 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.

Judging by the fact that Gener8 Maritime Inc (NYSE:GNRT) has weathered falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of fund managers who were dropping their full holdings in the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management said goodbye to the largest investment of all the hedgies tracked by Insider Monkey, totaling about $0.8 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Gener8 Maritime Inc (NYSE:GNRT) but similarly valued. We will take a look at PROS Holdings, Inc. (NYSE:PRO), Tredegar Corporation (NYSE:TG), Clovis Oncology Inc (NASDAQ:CLVS), and Heritage Financial Corporation (NASDAQ:HFWA). This group of stocks’ market caps match GNRT’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $237 million. That figure was $216 million in GNRT’s case. Clovis Oncology Inc (NASDAQ:CLVS) is the most popular stock in this table. On the other hand PROS Holdings, Inc. (NYSE:PRO) is the least popular one with only 5 bullish hedge fund positions. Gener8 Maritime Inc (NYSE:GNRT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CLVS might be a better candidate to consider taking a long position in.

Disclosure: None