The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on September 30. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Pepco Holdings, Inc. (NYSE:POM) based on those filings.
Is Pepco Holdings, Inc. (NYSE:POM) a bargain? Money managers are buying. The number of long hedge fund bets improved by 5 recently. POM was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. There were 16 hedge funds in our database with POM 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 Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Alexandria Real Estate Equities Inc (NYSE:ARE), and WABCO Holdings Inc. (NYSE:WBC) to gather more data points.
In the eyes of most investors, hedge funds are perceived as underperforming, old financial tools of yesteryear. While there are greater than 8000 funds with their doors open at present, Our researchers look at the aristocrats of this group, about 700 funds. These money managers preside over most of all hedge funds’ total capital, and by keeping track of their finest equity investments, Insider Monkey has revealed several investment strategies that have historically outperformed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Now, we’re going to go over the fresh action encompassing Pepco Holdings, Inc. (NYSE:POM).
What does the smart money think about Pepco Holdings, Inc. (NYSE:POM)?
Heading into Q4, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 31% from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Carl Tiedemann and Michael Tiedemann’s TIG Advisors has the largest position in Pepco Holdings, Inc. (NYSE:POM), worth close to $87.9 million, corresponding to 4% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons’ Renaissance Technologies, with an $43.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish contain Robert Emil Zoellner’s Alpine Associates and Dmitry Balyasny’s Balyasny Asset Management.