Hedge fund managers with hundreds of millions of dollars rarely buy the illiquid shares of a micro-cap company -- but when they do it's often a prelude to much higher prices for that stock. Below I discuss the 13F "secret" to uncovering micro-cap winners as the "Whales"...
Investors who mimicked Hite Hedge Asset Management's long portfolio on Nov. 15 would have been up 29.49% through Feb 15., making Hite the top hedge fund for Q4. Established in 2012, Quincy, MA-based Hite Hedge is focused on MLPs in the energy sector.  The...
Dr. Michael Burry's Scion Asset Management disclosed holdings on Feb. 15 for the first time in over two years. The investing legend was one of the first people to recognize the massive risk in the pre-2007 sub-prime real estate market -- the then unknown money manager bet...
On December 27, 2018, Cannell Capital LLC — a hedge fund based in Alta, Wyoming – disclosed sending three separate letters to three company managements, notifying them of Cannell’s activist intentions. Buying the stocks targeted by Cannell on that date would have produced an average gain of 32.40% over the 25 trading days since.
In 1951, Denver resident Ida Goldstein purchased the formula for Scott’s Liquid Gold for $350 as a business opportunity for her three young adult sons. The guys began mixing and bottling the amber-colored wood care oil by hand in the family garage. So was born the brand that eventually found its place into households across America. Some 65 years later, the company is going strong.
NASCAR has always ruled auto racing in the U.S., and though attendance has declined in recent years, NASCAR produced revenue of $660 million in 2017. But internationally, the king of racing is Formula 1, generating revenue of over $1.83 billion in 2017. With 21 events held around the world last...
In May of 2015, Nelson Obus’s lawyer opened his client’s trial by saying that either the hedge fund manager is an honest man or "the lamest insider trader in history." Twelve years after he was first charged by the SEC for insider trading, Obus, the manager of New York-based hedge fund Wynnefield Capital Inc., was found not guilty by a jury. Fast forward to January 14, 2019 and Obus just submitted an insider filing to his nemesis the SEC,  disclosing that his fund purchased 20,000 shares of Landec Corp. (LNDC) at $11.33. It’s a trade that investors may want to note – not because of any alleged impropriety, but because the stock being bought may be an attractive opportunity.
Question: If you’re a top hedge fund manager and the value of your highest conviction stock suddenly drops by 20%, what do you do? Answer: You buy more. Late in 2018, investors panic-sold en masse. Indiscriminate selling. Babies thrown out with bathwater. While the public freaked-out about interest rates, trade wars and recessions, leading hedge funds added to their best ideas.
In a classic scene from the 1967 film Cool Hand Luke, the prison warden whips an insubordinate inmate (Paul Newman) into a ditch then stands over him and seethes: “What we got here is a failure to communicate.” In a Dec. 17 letter to Houston Wire and Cable (HWCC), D3 Funds’ David Nierenberg disclosed a 9.9% stake in the company and quoted the famous movie line. But while Nierenberg was friendlier than the warden in Coll Hand Luke, his sense of frustration with his fund’s long-held investment was evident.
As tech stocks were battered last week, a hedge fund with a history of smart moves was buying.  Activist Hedge Fund ValueAct Holdings reported on Nov. 23 that it upped its stake in Seagate Technology (STX) from 26.4 to 26.77 million shares. The purchases by the $16.48 billion fund, headed by Jeffrey Ubben, increased ValueAct’s ownership of STX to about 9.32%.