Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.
Louisiana-Pacific Corporation (NYSE:LPX) was in 20 hedge funds’ portfolios at the end of September. LPX investors should pay attention to an increase in support from the world’s most elite money managers lately. There were 16 hedge funds in our database with LPX positions at the end of the previous quarter. At the end of this article we will also compare LPX to other stocks including Monolithic Power Systems, Inc. (NASDAQ:MPWR), Rowan Companies PLC (NYSE:RDC), and WESCO International, Inc. (NYSE:WCC) to get a better sense of its popularity.
Now, we’re going to take a glance at the recent action regarding Louisiana-Pacific Corporation (NYSE:LPX).
What have hedge funds been doing with Louisiana-Pacific Corporation (NYSE:LPX)?
At Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Louisiana-Pacific Corporation (NYSE:LPX). Citadel Investment Group has a $77.4 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Adage Capital Management, led by Phill Gross and Robert Atchinson, holding a $76.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism include Jeffrey Altman’s Owl Creek Asset Management, Steve Cohen’s Point72 Asset Management and Michael Kaufman’s MAK Capital One.