Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
JG Wentworth Co (NYSE:JGW) shareholders have witnessed a decrease in hedge fund sentiment in recent months. At the end of this article we will also compare JGW to other stocks including API Technologies Corp (NASDAQ:ATNY), Performant Financial Corp (NASDAQ:PFMT), and DryShips Inc. (NASDAQ:DRYS) to get a better sense of its popularity.
Keeping this in mind, we’re going to view the key action surrounding JG Wentworth Co (NYSE:JGW).
How have hedgies been trading JG Wentworth Co (NYSE:JGW)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of -50% from the second quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jeff Buick’s Trishield Capital Management has the number one position in JG Wentworth Co (NYSE:JGW), worth close to $13.9 million, comprising 15.5% of its total 13F portfolio. The second largest stake is held by Whitebox Advisors, led by Andy Redleaf, holding a $5.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish comprise Ken Griffin’s Citadel Investment Group, and Chuck Royce’s Royce & Associates .