TrueCar Inc (TRUE) Continues Its Slide on Monday with a 14% Drop

Before we get to that, we should explain why we think it’s important. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 80 percentage points, returning over 135% (read more details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

As of the end of March, the largest shareholder of TrueCar Inc (NASDAQ:TRUE) among the funds we track, is Karthik Sarma’s SRS Investment Management, which owns 2.0 million shares worth $35.70 million. Interestingly, among SRS’ top picks are two other stocks associated with the automotive industry, Avis Budget Group Inc. (NASDAQ:CAR) and Hertz Global Holdings Inc (NYSE:HTZ). Another investor that was bullish on TrueCar is Donald Chiboucis‘ Columbus Circle Investors, which disclosed ownership of 1.22 million shares in its latest 13F. Other funds with substantial long positions in the company include Shellback Capital, managed by Doug Gordon, Jon Hilsabeck and Don Jabro, Paul Reeder and Edward Shapiro’s PAR Capital Management, and Dmitry Balyasny‘s Balyasny Asset Management.

Among the aforementioned funds, Balyasny initiated a stake with 512,000 shares. Another fund from our database with a new stake in TrueCar Inc (NASDAQ:TRUE) is Lei Zhang’s Hillhouse Capital Management, which held 426,700 shares at the end of March.

Disclosure: none