Algert Coldiron Investors, led by Peter Algert and Kevin Coldiron, recently filed a Form 13F with the U.S. Securities and Exchange Commission for the reporting period of September 30. The fund’s equity portfolio contains a total of 302 positions, valued at more than $180 million as of the reporting period. The filing further shows that Algert Coldiron Investors has a strong focus on Technology, Consumer, and Industrial stocks. In this article, we are going to take a look at Algert Coldiron Investors’ top stock holdings, all of which are in under-the-radar companies.
Most investors don’t understand hedge funds and indicators that are based on hedge funds’ activities. They ignore hedge funds because of their recent poor performance in the bull market. Our research indicates that hedge funds underperformed because they aren’t 100% long. Hedge fund fees are also very large compared to the returns generated and they reduce the net returns experienced by investors. We uncovered that hedge funds’ long positions actually outperformed the market. For instance the 15 most popular small-cap stocks among funds beat the S&P 500 Index by more than 53 percentage points since the end of August 2012. These stocks returned a cumulative of 102% vs. a 48.7% gain for the S&P 500 Index (see the details here). That’s why we believe investors should pay attention to what hedge funds are buying (rather than what their net returns are).
#5 TRC Companies Inc. (NYSE:TRR)
Shares held (as of September 30): 174,217
Total Value (as of September 30): $2.06 million
Percent of Portfolio (as of September 30): 1.14%
Algert Coldiron Investors disclosed ownership of 174,217 shares of TRC Companies Inc. (NYSE:TRR), a $333.4-million engineering, environmental consulting, and construction management firm that provides integrated services to the energy, environmental, and infrastructure markets. Last month, TRC Companies Inc. (NYSE:TRR) and Willbros Group (NYSE:WG) entered into an agreement that will see TRC Companies acquire the Professional Services business segment of Willbros for $130 million in an all-cash transaction. The deal is expected to close during the second quarter of TRC’s fiscal year 2016. Shares of TRC Companies Inc. (NYSE:TRR) have increased by 16.56% during the last three months. Another investor that loves TRC Companies Inc. (NYSE:TRR) is Thomas E. Lynch’s Mill Road Capital Management, which holds 263,957 shares of the company as of June 30.
#4 Zagg Inc (NASDAQ:ZAGG)
Shares held (as of September 30): 311,054
Total Value (as of September 30): $2.11 million
Percent of Portfolio (as of September 30): 1.17%
The fourth-largest holding of Algert Coldiron Investors is represented by Zagg Inc (NASDAQ:ZAGG), in which the investor disclosed holding 311,054 shares, worth $2.11 million. The stake represents a quarter-over-quarter increase of 36%. Zagg Inc (NASDAQ:ZAGG) is a global mobile device accessories company, which reported income of $3.7 million for the third quarter, a notable improvement from the loss of $4.3 million it suffered in the same quarter last year, while its quarterly sales increased by 11% to $66.8 million. The improved financial situation has clearly had a positive impact on the company’s stock, which has gained around 33% year-to-date. Another investor betting big on Zagg Inc (NASDAQ:ZAGG) is Jim Simons’ Renaissance Technologies, which holds 1.26 million shares as of June 30.
On the next page, we will discuss Algert Coldiron Investors’ top three stocks, including Extreme Networks Inc (NASDAQ:EXTR).