Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
Newpark Resources Inc (NYSE:NR) was in 12 hedge funds’ portfolios at the end of September. NR has experienced a decrease in hedge fund sentiment in recent months. There were 14 hedge funds in our database with NR holdings at the end of the previous quarter. At the end of this article we will also compare NR to other stocks including BreitBurn Energy Partners L.P. (NASDAQ:BBEP), Medley Capital Corp (NYSE:MCC), and Centrue Financial Corp (NASDAQ:CFCB) to get a better sense of its popularity.
With all of this in mind, let’s take a gander at the latest action encompassing Newpark Resources Inc (NYSE:NR).
How have hedgies been trading Newpark Resources Inc (NYSE:NR)?
Heading into Q4, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Chuck Royce’s Royce & Associates has the most valuable position in Newpark Resources Inc (NYSE:NR), worth close to $10.2 million, comprising 0.1% of its total 13F portfolio. The second most bullish fund manager is Renaissance Technologies, led by Jim Simons, holding a $5 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions encompass Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and Cliff Asness’s AQR Capital Management.