RLJ Entertainment Inc (NASDAQ:RLJE) was in 8 hedge funds’ portfolio at the end of March. RLJE has seen an increase in enthusiasm from smart money of late. There were 7 hedge funds in our database with RLJE holdings at the end of the previous quarter.
To most traders, hedge funds are assumed to be worthless, old financial tools of the past. While there are over 8000 funds with their doors open today, we look at the leaders of this club, close to 450 funds. It is estimated that this group oversees the lion’s share of the smart money’s total capital, and by tracking their best investments, we have revealed a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as key, positive insider trading sentiment is a second way to break down the world of equities. Obviously, there are a number of incentives for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Now, we’re going to take a gander at the recent action regarding RLJ Entertainment Inc (NASDAQ:RLJE).
What does the smart money think about RLJ Entertainment Inc (NASDAQ:RLJE)?
In preparation for this quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of 14% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Charles Davidson’s Wexford Capital had the largest position in RLJ Entertainment Inc (NASDAQ:RLJE), worth close to $7.1 million, accounting for 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Buckingham Capital Management, managed by David Keidan, which held a $2.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co and Anand Parekh’s Alyeska Investment Group.
Now, key money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, created the biggest call position in RLJ Entertainment Inc (NASDAQ:RLJE). Alyeska Investment Group had 0.9 million invested in the company at the end of the quarter. Eric Sprott’s Sprott Asset Management also made a $0.5 million investment in the stock during the quarter.
How have insiders been trading RLJ Entertainment Inc (NASDAQ:RLJE)?
Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, RLJ Entertainment Inc (NASDAQ:RLJE) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to RLJ Entertainment Inc (NASDAQ:RLJE). These stocks are Cinedigm Digital Cinema Corp (NASDAQ:CIDM), PFSweb, Inc. (NASDAQ:PFSW), World Energy Solutions, Inc. (NASDAQ:XWES), Newtek Business Services, Inc (NASDAQ:NEWT), and SuperMedia Inc (NASDAQ:SPMD). This group of stocks are the members of the business services industry and their market caps are similar to RLJE’s market cap.