Hedge funds are not perfect. They have their bad picks just like everyone else. Micron, a stock hedge funds have loved, lost 50% during the last 12 months ending in October 30. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% in the same time period, vs. a gain of 5.2% for the S&P 500 Index. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of Windstream Holdings (NASDAQ:WIN).
Windstream Holdings (NASDAQ:WIN) investors should be aware of a decrease in support from the world’s most elite money managers of late. The shares of Windstream Holdings (NASDAQ:WIN) shared a similar sentiment, dropping 3.76% during the quarter. We will discuss hedge funds that held positions in the company, at the end of September.
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 Universal Electronics Inc (NASDAQ:UEIC), IAMGOLD Corporation (USA) (NYSE:IAG), and The Rubicon Project Inc (NYSE:RUBI) to gather more data points.
In the 21st century investor’s toolkit, there are plenty of tools shareholders use to value stocks. Some of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the elite fund managers can beat the market by a superb amount (see the details here).
Now, we’re going to take a glance at the recent action surrounding Windstream Holdings (NASDAQ:WIN).
How have hedgies been trading Windstream Holdings (NASDAQ:WIN)?
At the end of Q3, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a decrease of 48% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Tom Sandell’s Sandell Asset Management has the biggest position in Windstream Holdings (NASDAQ:WIN), worth close to $14.8 million, comprising 2.3% of its total 13F portfolio. The second most bullish fund manager is Paul Tudor Jones of Tudor Investment Corp, with a $12.8 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Some other peers that are bullish include D E Shaw, Don Morgan’s Brigade Capital, and Jeffrey Bronchick’s Cove Street Capital.