At Insider Monkey, we pore over the filings of more than 700 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not Nationstar Mortgage Holdings Inc (NYSE:NSM) makes for a good investment right now.
Nationstar Mortgage Holdings Inc (NYSE:NSM) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 22 hedge funds’ portfolios at the end of September. At the end of this article we will also compare NSM to other stocks including American Axle & Manufact. Holdings, Inc. (NYSE:AXL), Paylocity Holding Corp (NASDAQ:PCTY), and Ship Finance International Limited (NYSE:SFL) to get a better sense of its popularity.
According to most stock holders, hedge funds are assumed to be slow, outdated financial tools of the past. While there are more than an 8000 funds with their doors open at the moment, Our researchers hone in on the bigwigs of this group, around 700 funds. These hedge fund managers shepherd bulk of all hedge funds’ total capital, and by tailing their first-class investments, Insider Monkey has identified many investment strategies that have historically exceeded 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.
With all of this in mind, let’s take a peek at the recent action surrounding Nationstar Mortgage Holdings Inc (NYSE:NSM).
How are hedge funds trading Nationstar Mortgage Holdings Inc (NYSE:NSM)?
According to Insider Monkey’s hedge fund database, Fortress Investment Group, managed by Michael Novogratz, holds the largest position in Nationstar Mortgage Holdings Inc (NYSE:NSM). Fortress Investment Group has a $930.4 million position in the stock, comprising 14.2% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, led by Ken Griffin, holding a $54 million position; 0.1% of its 13F portfolio is allocated to the company. Other members of the smart money that are bullish consist of Robert Joseph Caruso’s Select Equity Group, Michael Blitzer’s Kingstown Capital Management and Clint Carlson’s Carlson Capital.