The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Envestnet Inc (NYSE:ENV).
Is Envestnet Inc (NYSE:ENV) going to take off soon? Prominent investors are surely buying. The number of bullish hedge fund investments moved up by 1 recently. ENV was in 6 hedge funds’ portfolios at the end of September. There were 5 hedge funds in our database with ENV holdings at the end of June. 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 Alliance Holdings GP, L.P. (NASDAQ:AHGP), Kaiser Aluminum Corp. (NASDAQ:KALU), and Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) 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.
Hedge fund activity in Envestnet Inc (NYSE:ENV)
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 20% uptick from the second quarter of 2016. The graph below displays the number of hedge funds with bullish positions in ENV over the last 5 quarters, which is still down by over 50% during that time. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Whetstone Capital Advisors, led by David Atterbury, holds the biggest position in Envestnet Inc (NYSE:ENV). Whetstone Capital Advisors has a $12.5 million position in the stock, comprising 5.9% of its 13F portfolio. The second largest stake is held by Paul Marshall and Ian Wace of Marshall Wace LLP, with a $3.4 million position. Other hedge funds and institutional investors with similar optimism consist of Richard Driehaus’ Driehaus Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Matthew Hulsizer’s PEAK6 Capital Management. We should note that Whetstone Capital Advisors is among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.