Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Is Core Laboratories N.V. (NYSE:CLB) worth your attention right now? The smart money is becoming more confident. The number of bullish hedge fund bets went up by 1 in recent months. CLB was in 22 hedge funds’ portfolios at the end of September. There were 21 hedge funds in our database with CLB holdings at the end of the previous quarter. At the end of this article we will also compare CLB to other stocks including Douglas Emmett, Inc. (NYSE:DEI), Brown & Brown, Inc. (NYSE:BRO), and Service Corporation International (NYSE:SCI) to get a better sense of its popularity.
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 Core Laboratories N.V. (NYSE:CLB)?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a 5% boost from the second quarter of 2016, as smart money ownership breaks through to a yearly high. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ariel Investments, managed by John W. Rogers, holds the largest position in Core Laboratories N.V. (NYSE:CLB). Ariel Investments has a $29.5 million position in the stock. Coming in second is Renaissance Technologies, led by Jim Simons, holding a $24.9 million position. Remaining hedge funds and institutional investors with similar optimism comprise Craig C. Albert’s Sheffield Asset Management, Tom Gayner’s Markel Gayner Asset Management and Cliff Asness’ AQR Capital Management.