The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at RTI Surgical Inc. (NASDAQ:RTIX) from the perspective of those elite funds.
Hedge fund interest in RTI Surgical Inc. (NASDAQ:RTIX) shares was flat at the end of last quarter. This is usually a negative indicator. 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 Neovasc Inc. (NASDAQ:NVCN), Baldwin & Lyons Inc (NASDAQ:BWINB), and Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) to gather more data points.
If you’d ask most market participants, hedge funds are viewed as worthless, outdated financial tools of the past. While there are over an 8000 funds trading at present, Our experts hone in on the masters of this club, approximately 700 funds. It is estimated that this group of investors controls most of the smart money’s total capital, and by keeping track of their unrivaled equity investments, Insider Monkey has unearthed a number of investment strategies that have historically outstripped the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, we’re going to take a peek at the latest action regarding RTI Surgical Inc. (NASDAQ:RTIX).
How have hedgies been trading RTI Surgical Inc. (NASDAQ:RTIX)?
At the end of the third quarter, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the second quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Justin John Ferayorni’s Tamarack Capital Management has the number one position in RTI Surgical Inc. (NASDAQ:RTIX), worth close to $11.1 million, corresponding to 1.3% of its total 13F portfolio. The second largest stake is held by Kris Jenner, Gordon Bussard, Graham McPhail of Rock Springs Capital Management, with a $10.6 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish encompass Chuck Royce’s Royce & Associates, D E Shaw, and Israel Englander’s Millennium Management.