Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
IDEXX Laboratories, Inc. (NASDAQ:IDXX) has seen an increase in hedge fund interest 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 The Cooper Companies, Inc. (NYSE:COO), The WhiteWave Foods Co (NYSE:WWAV), and LG Display Co Ltd. (ADR) (NYSE:LPL) 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.
Now, let’s take a glance at the recent action surrounding IDEXX Laboratories, Inc. (NASDAQ:IDXX).
What does the smart money think about IDEXX Laboratories, Inc. (NASDAQ:IDXX)?
Heading into the fourth quarter of 2016, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a jump of 20% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Robert Joseph Caruso’s Select Equity Group has the most valuable position in IDEXX Laboratories, Inc. (NASDAQ:IDXX), worth close to $246.2 million, amounting to 2.1% of its total 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which holds a $79.9 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish consist of Jim Simons’s Renaissance Technologies, Principal Global Investors’s Columbus Circle Investors and Richard Chilton’s Chilton Investment Company.