Is DT Asia Investments Ltd (NASDAQ:CADTU) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy league graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments (for some reason the mainstream media paid a ton of attention to Ackman’s gigantic JC Penney and Valeant failures) and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
DT Asia Investments Ltd (NASDAQ:CADTU) investors should be aware of an increase in support from the world’s most elite money managers lately. DT Asia Investments Ltd (NASDAQ:CADTU) was in five hedge funds’ portfolios at the end of September. There were four hedge funds in our database with DT Asia Investments Ltd (NASDAQ:CADTU) holdings at the end of the previous quarter. At the end of this article, we will also compare DT Asia Investments Ltd (NASDAQ:CADTU) to other stocks including Manitex International, Inc. (NASDAQ:MNTX), Famous Dave’s of America, Inc. (NASDAQ:DAVE), and ADMA Biologics Inc (NASDAQ:ADMA) to get a better sense of its popularity.
According to most market participants, hedge funds are perceived as slow, outdated financial tools of yesteryear. While there are more than 8,000 funds with their doors open at the moment, hedge fund experts at Insider Monkey look at the leaders of this club, about 700 funds. Most estimates calculate that this group of people preside over most of all hedge funds’ total asset base, and by watching their unrivaled picks, Insider Monkey has revealed a number of investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points annually for a decade in its backtests.
Keeping this in mind, let’s analyze the key action regarding DT Asia Investments Ltd (NASDAQ:CADTU).
How are hedge funds trading DT Asia Investments Ltd (NASDAQ:CADTU)?
At the end of the third quarter, a total of five of the hedge funds tracked by Insider Monkey were long in this stock, an increase of 25% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably (or had already accumulated large positions).
When looking at the hedgies followed by Insider Monkey, Bulldog Investors, managed by Phillip Goldstein, Andrew Dakos and Steven Samuels, holds the largest position in DT Asia Investments Ltd (NASDAQ:CADTU). Bulldog Investors has a $4.5 million position in the stock, comprising 2.1% of its 13F portfolio. Sitting in the number two spot is Seneca Capital, led by Douglas Hirsch, holding a $4.1 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining peers that are bullish comprise Andrew Weiss’ Weiss Asset Management, Sander Gerber’s Hudson Bay Capital Management, and Bart Baum’s Ionic Capital Management.
Let’s also take a look at hedge fund activity in other stocks similar to DT Asia Investments Ltd (NASDAQ:CADTU). These stocks are Manitex International, Inc. (NASDAQ:MNTX), Famous Dave’s of America, Inc. (NASDAQ:DAVE), ADMA Biologics Inc (NASDAQ:ADMA), and Taseko Mines Limited (USA) (NYSEAMEX:TGB). All of these stocks’ market caps match DT Asia Investments Ltd (NASDAQ:CADTU)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of seven hedge funds with bullish positions and the average amount invested in these stocks was $29 million, while slightly less than half of that was invested in DT Asia Investments, $14 million. Famous Dave’s of America, Inc. (NASDAQ:DAVE) is the most popular stock in this table. On the other hand, Taseko Mines Limited (USA) (NYSEAMEX:TGB) is the least popular one with only four bullish hedge fund positions. DT Asia Investments Ltd (NASDAQ:CADTU) is not the least popular stock in this group when factoring in the amount of capital invested in it, 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 Famous Dave’s of America, Inc. (NASDAQ:DAVE) might be a better candidate to consider a long position in.