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 Loral Space & Communications Ltd. (NASDAQ:LORL) the right pick for your portfolio? The best stock pickers are getting more bullish. The number of long hedge fund bets increased by 1 recently. 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 Adeptus Health Inc (NYSE:ADPT), Flow International Corporation (NASDAQ:FLOW), and Etsy Inc (NASDAQ:ETSY) 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 does the smart money think about Loral Space & Communications Ltd. (NASDAQ:LORL)?
Heading into the fourth quarter of 2016, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 4% increase from the second quarter of 2016. Ownership of the stock has remained in a narrow range of between 23 and 25 hedge funds for several quarters. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, MHR Fund Management, managed by Mark Rachesky, holds the most valuable position in Loral Space & Communications Ltd. (NASDAQ:LORL). MHR Fund Management has a $333.6 million position in the stock, comprising 23.6% of its 13F portfolio. The second largest stake is held by Highland Capital Management, led by James Dondero, holding an $82.3 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish include Christopher Pucillo’s Solus Alternative Asset Management, Leon Cooperman’s Omega Advisors and Eric Edidin and Josh Lobel’s Archer Capital Management.