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.
Is Inventure Foods Inc (NASDAQ:SNAK) ready to rally soon? Prominent investors are selling, and the declining share prices during the quarter could be a possible reason, as the shares of Inventure Foods Inc were down 12.51%. The number of bullish hedge fund bets went down by 4 in recent months. Inventure Foods Inc (NASDAQ:SNAK) was in 6 hedge funds’ portfolios at the end of September. There were 10 hedge funds in our database with Inventure Foods Inc (NASDAQ:SNAK) positions at the end of the previous quarter. For a better understanding of the hedge fund sentiment, we decided to cover hedge funds holding stake in the company.
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 EMCORE Corporation (NASDAQ:EMKR), ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS), and Monroe Capital Corp (NASDAQ:MRCC) to gather more data points.
To the average investor, there are dozens of gauges market participants have at their disposal to appraise stocks. Some of the most underrated gauges are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the best picks of the elite investment managers can beat the broader indices by a significant amount (see the details here).
With all of this in mind, we’re going to take a look at the key action encompassing Inventure Foods Inc (NASDAQ:SNAK).
How are hedge funds trading Inventure Foods Inc (NASDAQ:SNAK)?
Heading into Q4, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 40% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Chuck Royce’s Royce & Associates has the largest position in Inventure Foods Inc (NASDAQ:SNAK), worth close to $5.1 million, amounting to less than 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Alyesa Investment Groupk, led by Anand Parekh, holding a $3.8 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Brian C. Freckmann’s Lyon Street Capital, Mark N. Diker’s Diker Management, and John Zaro’s Bourgeon Capital.