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Before we spend many hours researching a company, we'd like to analyze what insiders, hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Melco Resorts & Entertainment Limited (NASDAQ:MLCO). Melco Resorts & Entertainment Limited (NASDAQ:MLCO) investors should be aware of a decrease in support from the world's most elite money managers of late. MLCO was in 27 hedge funds' portfolios at the end of the third quarter of 2018. There were 35 hedge funds in our database with MLCO holdings at the end of the previous quarter. With 35 smart money investors long the stock, Melco wasn’t one of the 30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 17.4% year to date and outperformed the market by more than 14 percentage points this year. This strategy also outperformed the market by 3 percentage points in the fourth quarter despite the market volatility (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
While collecting data for our write-up, we tracked down the opinion of ClearBridge Value Trust, a fund that is long on the stock. In its 3rd Quarter Shareholder Letter, the fund said this: "Melco Resorts and Entertainment (MLCO), in the consumer discretionary sector, runs casino gaming and entertainment facilities in Asia. The stock slipped as Macau June gross gaming revenue was nearly half the rate of May and below consensus, partly to due to macro concerns and partly because of weather. Its mass market revenues, however, which account for over 80% of earnings, look to be in relatively better shape, and financial results should hold up better for the second half of 2018." Let's view the recent hedge fund action encompassing Melco Resorts & Entertainment Limited (NASDAQ:MLCO).
What does the smart money think about Melco Resorts & Entertainment Limited (NASDAQ:MLCO)?
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of -23% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards MLCO over the last 13 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.