Looking for high-potential stocks? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 7.6% in the 12 months ending November 21, with more than 51% of the stocks in the index failing to beat the benchmark. Therefore, the odds that one will pin down a winner by randomly picking a stock are less than the odds in a fair coin-tossing game. Conversely, best performing hedge funds’ 30 preferred mid-cap stocks generated a return of 18% during the same 12-month period. Coincidence? It might happen to be so, but it is unlikely. Our research covering a 17-year period indicates that hedge funds’ stock picks generate superior risk-adjusted returns. That’s why we believe it is wise to check hedge fund activity before you invest your time or your savings on a stock like Rand Logistics, Inc. (NASDAQ:RLOG) .
Rand Logistics, Inc. (NASDAQ:RLOG) has seen an increase in support from the world’s most successful money managers in recent months. There were 5 hedge funds in our database with RLOG holdings at the end of June. At the end of this article we will also compare RLOG to other stocks including Catalyst Biosciences Inc (NASDAQ:CBIO), Roka Bioscience Inc (NASDAQ:ROKA), and GenVec, Inc. (NASDAQ:GNVC) to get a better sense of its popularity.
With all of this in mind, we’re going to take a peek at the latest action regarding Rand Logistics, Inc. (NASDAQ:RLOG).
What does the smart money think about Rand Logistics, Inc. (NASDAQ:RLOG)?
Heading into the fourth quarter of 2016, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from the previous quarter. On the other hand, there were a total of 3 hedge funds with a bullish position in RLOG at the beginning of this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Dorset Management, led by David M. Knott, holds the largest position in Rand Logistics, Inc. (NASDAQ:RLOG). Dorset Management has a $0.5 million position in the stock, comprising 0.3% of its 13F portfolio. On Dorset Management’s heels is Laurion Capital Management, led by Benjamin A. Smith, which holds a $0.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish encompass Jim Simons’ Renaissance Technologies, one of the largest hedge funds in the world, Charles Frumberg’s Emancipation Capital and Nelson Obus’s Wynnefield Capital. We should note that Dorset Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As one would reasonably expect, key money managers have been driving this bullishness. Citadel Investment Group, led by Ken Griffin, created the most outsized position in Rand Logistics, Inc. (NASDAQ:RLOG). Citadel Investment Group had $0 million invested in the company at the end of the quarter.
Let’s also examine hedge fund activity in other stocks similar to Rand Logistics, Inc. (NASDAQ:RLOG). These stocks are Catalyst Biosciences Inc (NASDAQ:CBIO), Roka Bioscience Inc (NASDAQ:ROKA), GenVec, Inc. (NASDAQ:GNVC), and Erickson Air-Crane Inc (NASDAQ:EAC). This group of stocks’ market values are closest to RLOG’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $1 million in RLOG’s case. Catalyst Biosciences Inc (NASDAQ:CBIO) is the most popular stock in this table. On the other hand Erickson Air-Crane Inc (NASDAQ:EAC) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Rand Logistics, Inc. (NASDAQ:RLOG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.