Billionaire Steve Cohen believes the hedge fund industry is currently crowded with too many money managers employing similar strategies. “One of my biggest worries is that there are so many players out there trying to do the same strategies […] if one big one goes down, will we take collateral damage?”, said the manager of family office Point72 Asset Management L.P. at the Milken Institute Global Conference in Los Angeles on Monday. Billionaire Cliff Asness, who also spoke in the panel discussion with Mr. Cohen, believes things will get better for the hedge fund industry, saying “I expect better than the last three to five years, but lower than history”. Assuming Mr. Asness’ prediction turns out to be accurate, it seems to be a good idea to have a look at several noteworthy hedge fund moves. So let’s discuss several SEC filings submitted earlier this week by widely-known investment firms monitored by Insider Monkey.
At Insider Monkey, we track around 785 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
Billionaire Mario Gabelli Cuts Stake in Brink’s Company
According to a freshly-amended 13D filing, Mario Gabelli’s GAMCO Investors and its affiliates currently own nearly 3.00 million shares of Brink’s Company (NYSE:BCO), which make up 6.12% of the company’s outstanding shares. This represents a decrease from the stake of 3.46 million shares disclosed in GAMCO’s previous 13D filing on the company, which was submitted with the SEC in late July 2015. GAMCO disclosed a stake of 2.48 million shares through the round of 13Fs for December quarter, but the stake does not include shares held by the firm’s affiliates. The provider of secure logistics and security solutions, including cash-in-transit, ATM replenishment, international transportation of valuables, and other services, has seen its market capitalization gain 17% since the beginning of 2016.
Brink’s Company (NYSE:BCO) had been under pressure from activist hedge fund Starboard Value LP, run by Jeffrey Smith, until the two parties reached an agreement in early January, under which three Starboard-designated directors were appointed to the Board. Similarly, the company said Chairman and Chief Executive Officer Thomas C. Schievelbein would step down at the annual meeting of shareholders or even earlier. The activist shareholder has voiced his discontent with the security company’s history of poor performance and missed execution, outlining that the company faced compelling opportunity to improve operating performance. Starboard Value LP had 4.58 million shares of Brink’s Company (NYSE:BCO) in its equity portfolio at the end of December.
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Let’s head to the next pages of this article, where we will digest three separate SEC filings.