Is The St. Joe Company (JOE) A Good Stock To Buy?

Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by elite investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.

Is The St. Joe Company (NYSE:JOE) a healthy stock for your portfolio? Money managers are turning less bullish. The number of bullish hedge fund bets were cut by 1 recently. At the end of this article we will also compare JOE to other stocks including Ferrellgas Partners, L.P. (NYSE:FGP), Mellanox Technologies, Ltd. (NASDAQ:MLNX), and Eastgroup Properties Inc (NYSE:EGP) to get a better sense of its popularity.

Keeping this in mind, let’s take a look at the recent action regarding The St. Joe Company (NYSE:JOE).

How have hedgies been trading The St. Joe Company (NYSE:JOE)?

At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Fairholme (FAIRX), managed by Bruce Berkowitz, holds the biggest position in The St. Joe Company (NYSE:JOE). Fairholme (FAIRX) has a $467.8 million position in the stock, comprising 13.5% of its 13F portfolio. On Fairholme (FAIRX)’s heels is Mario Gabelli of GAMCO Investors, with a $23.7 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other professional money managers that are bullish comprise Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and Ken Griffin’s Citadel Investment Group.