Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Restoration Hardware Holdings Inc (NYSE:RH) has experienced an increase in support from the world’s most elite money managers of late. 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 Knight Capital Group Inc. (NYSE:KCG), Evertec Inc (NYSE:EVTC), and Moelis & Co (NYSE:MC) to gather more data points.
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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.
Now, let’s view the latest action encompassing Restoration Hardware Holdings Inc (NYSE:RH).
What have hedge funds been doing with Restoration Hardware Holdings Inc (NYSE:RH)?
At Q3’s end, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 42% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Michael A. Price and Amos Meron’s Empyrean Capital Partners has the biggest position in Restoration Hardware Holdings Inc (NYSE:RH), worth close to $48.4 million, corresponding to 2.4% of its total 13F portfolio. Remaining hedge funds and institutional investors that hold long positions include Pasco Alfaro / Richard Tumure’s Miura Global Management, and Richard Mashaal’s Rima Senvest Management.