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.
Is Akorn, Inc. (NASDAQ:AKRX) going to take off soon? The best stock pickers are selling. The number of long hedge fund bets dropped by 6 in recent months. 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 Thor Industries, Inc. (NYSE:THO), Paramount Group Inc (NYSE:PGRE), and Western Alliance Bancorporation (NYSE:WAL) to gather more data points.
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.
What have hedge funds been doing with Akorn, Inc. (NASDAQ:AKRX)?
At Q3’s end, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, an 18% decline from the second quarter of 2016 after a short-lived rebound in hedge fund ownership during Q2. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Paulson & Co, managed by John Paulson, holds the number one position in Akorn, Inc. (NASDAQ:AKRX). Paulson & Co has a $244.6 million position in the stock, comprising 2.7% of its 13F portfolio. Sitting at the No. 2 spot is Consonance Capital Management, led by Mitchell Blutt, holding a $60 million position; the fund has 5.8% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish contain David Simon’s Twin Capital Management, Philip Hempleman’s Ardsley Partners and Solomon Kumin’s Folger Hill Asset Management.