Legendary investors such as Jeffrey Talpins and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don't publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That's why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Gores Metropoulos, Inc. (NASDAQ:GMHI) from the perspective of those elite funds.
Gores Metropoulos, Inc. (NASDAQ:GMHI) has experienced an increase in activity from the world's largest hedge funds lately. GMHI was in 18 hedge funds' portfolios at the end of March. There were 0 hedge funds in our database with GMHI positions at the end of the previous quarter. Our calculations also showed that GMHI isn't among the 30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's check out the latest hedge fund action regarding Gores Metropoulos, Inc. (NASDAQ:GMHI).
How have hedgies been trading Gores Metropoulos, Inc. (NASDAQ:GMHI)?
Heading into the second quarter of 2019, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18 from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in GMHI a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Arrowgrass Capital Partners, managed by Nick Niell, holds the biggest position in Gores Metropoulos, Inc. (NASDAQ:GMHI). Arrowgrass Capital Partners has a $20.5 million position in the stock, comprising 0.6% of its 13F portfolio. Sitting at the No. 2 spot is Governors Lane, led by Isaac Corre, holding a $20.5 million position; 1.5% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish contain Israel Englander's Millennium Management, Jeffrey Talpins's Element Capital Management and Mitch Kuflik and Rob Sobel's Brahman Capital.