Glenn J. Krevlin’s Glenhill Advisors is a New York based hedge fund which focuses mainly on small-cap stocks to generate profit. Based on the fund’s latest 13F filed with the SEC, the firm has a public equity portfolio valued at $1.27 billion. The fund’s activities during the quarter including making eight new purchases and increasing its ownership position in 13 other stocks, while its investment portfolio showed that it invested mainly in consumer discretionary stocks, which accounted for 34% of its public portfolio. Out of the hedge funds that we monitor, our experts picked some of its top small-cap stocks to study, namely Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), Pier 1 Imports, Inc. (NYSE:PIR), and Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).
A reader might question our decision to focus on the small-cap category, considering that its mostly the larger counterparts of these companies that head the portfolios of most hedge funds. The reason for our focus is simple. Our research has shown that in the period between 1999 and 2012 the top small-cap picks of hedge funds outperformed the broader market by nearly one percentage point per month, whereas the top overall picks (mostly large-caps) underperformed by seven basis points per month during the same period. Why pay high fees to own a glut of low-performing stocks when you can invest on your own in hedge funds’ best stock picks? Since its launch in August 2012, Insider Monkey’s small-cap strategy has outperformed the S&P 500 every year, returning over 142% since then, nearly 2.5 times greater than the S&P 500′s returns (read the details here).
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The first of Glenhill Advisors’ top small-cap picks that we are going to look into is Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), in which the fund increased its position to 2.59 million shares worth $81.48 million during the first quarter, from 2.47 million shares held at the end of 2014. A look at the stock’s performance shows that its value has increased by 15% over the past six months. Sinclair Broadcast Group Inc (NASDAQ:SBGI) and other broadcasters were dealt a major blow after the FCC shot down their push to change the airwaves auction rules for 2016. The National Association of Broadcasters was pushing to offload their valuable radio frequencies, which could have been repackaged and sold during the auction. A US Court of Appeal ruled against the challenge, reiterating that the petition lacked merit. Separately Sinclair Broadcast Group Inc (NASDAQ:SBGI) has confirmed the appointment of Robert Malandra as the company’s new vice president for Finance/Television. As part of the new changes, Tammy Dupuy and David Hewitt have also been promoted and will consequently act as the company’s Vice Presidents for Programming. Richard Barrera‘s Roystone Capital Partners holds 4.35 million shares of SBGI worth $136.64 million.
At the end of the first quarter, Glenhill Advisors’ had bought 5.28 million shares of Pier 1 Imports, Inc. (NYSE:PIR) valued at $73.76 million, a new position for the fund. Credit Suisse analyst Seth Sigman is maintaining a cautious approach with respect to the prospects of the Home Furnishing Segment in which Pier 1 Imports Inc (NYSE:PIR) is a key player. Increased investments in e-commerce, as well as promotional activity, continues to drag margins in the sector, something that the analyst fears could affect returns this year. Nonetheless, Pier 1 Imports Inc (NYSE:PIR) has the highest gains in the sector this year, but has still left a lot to be desired as demand in the sector remains low compared to previous highs. The company is, however showing signs of improvement as it has seemingly moved past supply chain issues that dragged it down in 2014. Mario Gabelli‘s GAMCO Investors reported holding 1.38 million shares of Pier 1 with a value is $19.32 million as of March 31.
Glenhill Advisors owned 5.82 million shares of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) with a market value of $69.61 million on March 31, a big increase from the 3.03 million shares it held at the end of 2014. East Kent Hospitals University NHS Foundation Trust, and Maidstone and Tunbridge Wells NHS Trust are the latest partners to deploy Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)’s PAS to replace their existing systems. The two organizations are set to enjoy access to highly flexible and configurable solutions for managing their patients’ data. East Kent Hospitals and Maidstone and Tunbridge join more than a dozen Trusts and hospitals already using Allscripts PAS. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is renowned for being highly reliable in delivering value-added client care while enabling hospitals and Trusts to deliver excellent care for patients. The two agreements highlight Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)’s desire to expand its presence in the UK, having been awarded the NHS SBS Clinical Information Systems Framework. Out of the 730 actively reporting hedge funds that we tracked during the first quarter, 28 of them had stakes in the company at the end of the quarter, with their total investment valued at $471.33 million. A few of the funds that had stakes in the stock are Clifton S. Robbins’ Blue Harbour Group, Ken Griffin’s Citadel Investment Group, and Jacob Gottlieb’s Visium Asset Management.
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