Is Party City Holdco Inc (PRTY) A Good Stock To Buy?

The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Party City Holdco Inc (NYSE:PRTY) from the perspective of those elite funds.

Is Party City Holdco Inc (NYSE:PRTY) a superb stock to buy now? Prominent investors are in a pessimistic mood. The number of long hedge fund bets retreated by 6 in recent months. PRTY was in 12 hedge funds’ portfolios at the end of September. There were 18 hedge funds in our database with PRTY positions at the end of the previous quarter. At the end of this article we will also compare PRTY to other stocks including KLX Inc (NASDAQ:KLXI), FleetMatics Group PLC (NYSE:FLTX), and Teekay LNG Partners L.P. (NYSE:TGP) to get a better sense of its popularity.

Now, we’re going to take a gander at the key action surrounding Party City Holdco Inc (NYSE:PRTY).

How have hedgies been trading Party City Holdco Inc (NYSE:PRTY)?

At Q3’s end, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -33% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Rob Citrone’s Discovery Capital Management has the biggest position in Party City Holdco Inc (NYSE:PRTY), worth close to $18.5 million, amounting to 0.2% of its total 13F portfolio. The second most bullish fund manager is Sharlyn C. Heslam of Stockbridge Partners, with a $14.3 million position; 0.8% of its 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions include Ken Griffin’s Citadel Investment Group, Lee Munder’s Lee Munder Capital Group and Bart Baum’s Ionic Capital Management.