After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Golub Capital BDC Inc (NASDAQ:GBDC).
Golub Capital BDC Inc (NASDAQ:GBDC) was in 7 hedge funds’ portfolios at the end of the third quarter of 2015. GBDC investors should be aware of an increase in hedge fund sentiment in recent months. There were 4 hedge funds in our database with GBDC 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 Safety Insurance Group, Inc. (NASDAQ:SAFT), Calgon Carbon Corporation (NYSE:CCC), and Inland Real Estate Corporation (NYSE:IRC) to gather more data points.
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Today there are tons of indicators stock market investors put to use to grade stocks. A couple of the less known indicators are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can beat their index-focused peers by a significant amount (see the details here).
Keeping this in mind, we’re going to view the fresh action encompassing Golub Capital BDC Inc (NASDAQ:GBDC).
How are hedge funds trading Golub Capital BDC Inc (NASDAQ:GBDC)?
At Q3’s end, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of 75% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Amy Minella’s Cardinal Capital has the biggest position in Golub Capital BDC Inc (NASDAQ:GBDC), worth close to $10.7 million, corresponding to 0.7% of its total 13F portfolio. The second largest stake is held by Clough Capital Partners, managed by Charles Clough, which holds an $4.4 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism contain John Overdeck and David Siegel’s Two Sigma Advisors, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
As aggregate interest increased, some big names have jumped into Golub Capital BDC Inc (NASDAQ:GBDC) headfirst. D E Shaw, managed by D. E. Shaw, assembled the largest position in Golub Capital BDC Inc (NASDAQ:GBDC). D E Shaw had $0.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated an $0.6 million position during the quarter. The only other fund with a brand new GBDC position is Chao Ku’s Nine Chapters Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Golub Capital BDC Inc (NASDAQ:GBDC) but similarly valued. These stocks are Safety Insurance Group, Inc. (NASDAQ:SAFT), Calgon Carbon Corporation (NYSE:CCC), Inland Real Estate Corporation (NYSE:IRC), and GTT Communications Inc (NYSE:GTT). This group of stocks’ market caps are similar to GBDC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAFT | 6 | 28709 | -1 |
| CCC | 11 | 14698 | 0 |
| IRC | 10 | 34926 | 1 |
| GTT | 12 | 133475 | 0 |
As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $22 million in GBDC’s case. GTT Communications Inc (NYSE:GTT) is the most popular stock in this table. On the other hand Safety Insurance Group, Inc. (NASDAQ:SAFT) is the least popular one with only 6 bullish hedge fund positions. Golub Capital BDC Inc (NASDAQ:GBDC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GTT might be a better candidate to consider a long position.