During the first half of the fourth quarter the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by about 4 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 constituents were among the 500 most popular stocks among hedge funds), and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of EZCORP Inc (NASDAQ:EZPW) and see how the stock is affected by the recent hedge fund activity.
EZCORP Inc (NASDAQ:EZPW) investors should pay attention to a decrease in support from the world’s most elite money managers recently. At the end of the third quarter, there were 19 hedge fund from Insider Monkey database long the stock, which represents a decrease of 2 from the previous quarter. Not only that the stock is slowly losing interest from smart money managers, but the number of investors it had at the end of third quarter was far from enough for it to be counted as one of the 30 most popular stocks among hedge funds in Q3 of 2018. Even though data reported by now represents a solid insight into the company’s popularity we don’t wont to make our conclusion here, and would like to seek more information about it.
While researching to collect more details about EZCORP Inc (NASDAQ:EZPW), we found Laughing Water Capital’s Q3 Investor Letter, in which this long biased boutique investment partnership shared its opinion on the stock. We bring you one part of that letter: