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.
PDC Energy Inc (NASDAQ:PDCE) was in 29 hedge funds’ portfolios at the end of the third quarter of 2015. PDCE shareholders have witnessed an increase in hedge fund sentiment of late. There were 27 hedge funds in our database with PDCE positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Groupon Inc (NASDAQ:GRPN), J&J Snack Foods Corp. (NASDAQ:JJSF), and NRG Yield, Inc. Class C (NYSE:NYLD) to gather more data points.
Keeping this in mind, we’re going to review the new action encompassing PDC Energy Inc (NASDAQ:PDCE).
How have hedgies been trading PDC Energy Inc (NASDAQ:PDCE)?
Heading into Q4, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% 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 substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Millennium Management, managed by Israel Englander, holds the largest position in PDC Energy Inc (NASDAQ:PDCE). Millennium Management has a $89.1 million position in the stock, comprising 0.2% of its 13F portfolio. On Millennium Management’s heels is Brenham Capital Management, led by John Labanowski, holding a $55.7 million position; the fund has 12% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish consist of Robert Polak’s Anchor Bolt Capital, Ken Griffin’s Citadel Investment Group and Vince Maddi and Shawn Brennan’s SIR Capital Management.