Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the third quarter. Among them, Valeant and Micron ranked among the top 30 picks and both lost around 20%. Citigroup, which was the third most popular stock, lost 10% amid uncertainty regarding the interest rates. Nevertheless, our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
Green Dot Corporation (NYSE:GDOT) was in 16 hedge funds’ portfolios at the end of the third quarter of 2015. GDOT has seen a decrease in activity from the world’s largest hedge funds lately, as there were 24 hedge funds in our database with GDOT holdings at the end of the previous quarter. 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 Albany International Corp. (NYSE:AIN), PTC Therapeutics, Inc. (NASDAQ:PTCT), and Bristow Group Inc (NYSE:BRS) to gather more data points.
In today’s marketplace there are tons of gauges stock market investors have at their disposal to assess publicly traded companies. A pair of the most under-the-radar gauges are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outperform the broader indices by a significant amount (see the details here).
Keeping this in mind, let’s take a peek at the key action surrounding Green Dot Corporation (NYSE:GDOT).
What does the smart money think about Green Dot Corporation (NYSE:GDOT)?
Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -33% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group 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, Joseph A. Jolson’s Harvest Capital Strategies has the most valuable position in Green Dot Corporation (NYSE:GDOT), worth close to $37.9 million, accounting for 6.8% of its total 13F portfolio. Coming in second is Ken Griffin’s Citadel Investment Group, with a $30.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. The remaining members of the smart money that hold long positions include Peter S. Park’s Park West Asset Management, Neil Chriss’ Hutchin Hill Capital and Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital.