Is Dawson Geophysical Company (DWSN) Going to Burn These Hedge Funds?

Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Dawson Geophysical Company (NASDAQ:DWSN).

Is Dawson Geophysical Company a great stock to buy now? Prominent investors are turning less bullish. The number of bullish hedge fund bets shrunk by 1 recently. At the end of this article we will also compare DWSN to other stocks including FalconStor Software, Inc. (NASDAQ:FALC), Crown Crafts, Inc. (NASDAQ:CRWS), and Unwired Planet Inc (NASDAQ:UPIP) to get a better sense of its popularity.

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If you’d ask most market participants, hedge funds are assumed to be slow, old financial vehicles of yesteryear. While there are more than 8000 funds with their doors open at the moment, Our researchers look at the masters of this club, about 700 funds. Most estimates calculate that this group of people manage the majority of all hedge funds’ total capital, and by tailing their matchless investments, Insider Monkey has unearthed various investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points a year for a decade in their back tests.

With all of this in mind, we’re going to view the latest action encompassing Dawson Geophysical Company (NASDAQ:DWSN).

What does the smart money think about Dawson Geophysical Company (NASDAQ:DWSN)?

Heading into Q4, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from the second quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Beddow Capital Management, managed by Ed Beddow and William Tichy, holds the most valuable position in Dawson Geophysical Company (NASDAQ:DWSN). Beddow Capital Management has a $8.1 million position in the stock, comprising 3.4% of its 13F portfolio. On Beddow Capital Management’s heels is Renaissance Technologies, led by Jim Simons, holding a $3.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism include Chuck Royce’s Royce & Associates, D. E. Shaw’s D E Shaw and Bryant Regan’s Lafitte Capital Management.