At Insider Monkey, we pore over the filings of more than 700 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not ProAssurance Corporation (NYSE:PRA) makes for a good investment right now.
ProAssurance Corporation (NYSE:PRA) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 14 hedge funds’ portfolios at the end of the third quarter of 2015. 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 Valero Energy Partners LP (NYSE:VLP), Aaron’s, Inc. (NYSE:AAN), and Store Capital Corp (NYSE:STOR) to gather more data points.
To most traders, hedge funds are viewed as underperforming, old investment vehicles of years past. While there are more than 8000 funds with their doors open at present, Our researchers look at the moguls of this club, approximately 700 funds. These money managers shepherd the lion’s share of the hedge fund industry’s total asset base, and by tracking their matchless stock picks, Insider Monkey has found several investment strategies that have historically outpaced the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Now, let’s take a look at the fresh action encompassing ProAssurance Corporation (NYSE:PRA).
How have hedgies been trading ProAssurance Corporation (NYSE:PRA)?
At the end of Q3, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the second quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, holds the most valuable position in ProAssurance Corporation (NYSE:PRA). Polar Capital has a $17.2 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Cliff Asness of AQR Capital Management, with a $14.6 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish comprise Ken Griffin’s Citadel Investment Group, Chuck Royce’s Royce & Associates, and Renaissance Technologies.