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 Realogy Holdings Corp (NYSE:RLGY).
Realogy Holdings Corp (NYSE:RLGY) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 39 hedge funds’ portfolios at the end of the third quarter of 2016. At the end of this article we will also compare RLGY to other stocks including Alere Inc (NYSE:ALR), First Hawaiian Inc (NASDAQ:FHB), and Endesa Americas SA – ADR (NYSE:EOCA) to get a better sense of its popularity.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
What have hedge funds been doing with Realogy Holdings Corp (NYSE:RLGY)?
At Q3’s end, a total of 39 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from one quarter earlier. By comparison, 49 hedge funds held shares or bullish call options in RLGY heading into this year. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Larry Robbins’ Glenview Capital has the most valuable position in Realogy Holdings Corp (NYSE:RLGY), worth close to $155.2 million, comprising 1.1% of its total 13F portfolio. On Glenview Capital’s heels is John Ku of Manor Road Capital Partners, with a $147.7 million position; 20.4% of its 13F portfolio is allocated to the company. Remaining peers that are bullish contain D E Shaw, one of the biggest hedge funds in the world, John Paulson’s Paulson & Co and David Gallo’s Valinor Management LLC. We should note that none of these hedge funds are 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.