Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the successful investors’ consensus returns have been exceptional. The top 30 mid-cap stocks among the best performing hedge funds in our database yielded an average return of 18% during the last 12 months, outperforming the S&P 500 Index funds by double digits. Although the successful funds occasionally have their duds, such as SunEdison and Valeant, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Store Capital Corp (NYSE:STOR).
Store Capital Corp (NYSE:STOR) has experienced a decrease in hedge fund sentiment lately. STOR was in 11 hedge funds’ portfolios at the end of September. There were 17 hedge funds in our database with STOR holdings at the end of the previous quarter. 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 MSC Industrial Direct Co Inc (NYSE:MSM), Hospitality Properties Trust (NYSE:HPT), and Healthcare Trust Of America Inc (NYSE:HTA) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Hedge fund activity in Store Capital Corp (NYSE:STOR)
At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, down by 35% from the previous quarter. The graph below displays the number of hedge funds with bullish position in STOR over the last 5 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, AEW Capital Management, led by Jeffrey Furber, holds the largest position in Store Capital Corp (NYSE:STOR). AEW Capital Management has a $65.4 million position in the stock, comprising 1.4% of its 13F portfolio. The second largest stake is held by Millennium Management, one of the 10 largest hedge funds in the world, holding a $29 million position. Some other professional money managers that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, D. E. Shaw’s D E Shaw and Jim Simons’ Renaissance Technologies. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.