Between June 25 and October 30th the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of CHC Group Ltd (NYSE:HELI) and see how the stock is affected by the recent hedge fund activity.
CHC Group Ltd investors should pay attention to a decrease in support from the world’s most elite money managers 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 Eleven Biotherapeutics Inc (NASDAQ:EBIO), Zosano Pharma Corp (NASDAQ:ZSAN), and Network-1 Technologies Inc (NYSEMKT:NTIP) to gather more data points.
According to most shareholders, hedge funds are viewed as worthless, outdated financial vehicles of yesteryear. While there are more than 8000 funds trading at present, Our experts choose to focus on the bigwigs of this group, about 700 funds. These money managers have their hands on bulk of the hedge fund industry’s total capital, and by tailing their matchless picks, Insider Monkey has spotted many investment strategies that have historically defeated the broader indices. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points annually for a decade in their back tests.
With all of this in mind, we’re going to take a glance at the latest action regarding CHC Group Ltd (NYSE:HELI).
Hedge fund activity in CHC Group Ltd (NYSE:HELI)
At the Q3’s end, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -46% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Geoffrey Raynor’s Q Investments (Specter Holdings) has the largest position in CHC Group Ltd (NYSE:HELI), worth close to $1.8 million, comprising 1.1% of its total 13F portfolio. The second largest stake is held by Bruce J. Richards and Louis Hanover’s Marathon Asset Management, with a $0.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that hold long positions encompass Jim Simons’ Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Because CHC Group Ltd (NYSE:HELI) has experienced a fall in interest from hedge fund managers, it’s safe to say that there exists a select few funds who were dropping their positions entirely heading into Q4. Intriguingly, Thomas Steyer’s Farallon Capital said goodbye to the biggest position of the 700 funds watched by Insider Monkey, comprising an estimated $0.2 million in stock. Benjamin A. Smith’s fund, Laurion Capital Management, also dumped its stock, about $0.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds heading into Q4.
Let’s now review hedge fund activity in other stocks similar to CHC Group Ltd (NYSE:HELI). These stocks are Eleven Biotherapeutics Inc (NASDAQ:EBIO), Zosano Pharma Corp (NASDAQ:ZSAN), Network-1 Technologies Inc (NYSEMKT:NTIP), and Ambassadors Group, Inc. (OTCMKTS:EPAX). All of these stocks’ market caps match HELI’s market cap.
|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 $5 million. That figure was $3 million in HELI’s case. Zosano Pharma Corp (NASDAQ:ZSAN) is the most popular stock in this table with five funds holding shares, while Eleven Biotherapeutics Inc (NASDAQ:EBIO) is the least popular one. Compared to these stocks CHC Group Ltd (NYSE:HELI) 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.