I probably spend too much time pilfering the SEC Form 13Fs. I don't have a huge research staff and budget (read: myself), so I like to let the top hedge funds do some of the initial legwork for me. (James Altucher's Stockpickr.com is a very user friendly site that lets you sift through some of the best funds out there.) I have blogged in the past about forming a best ideas value hedge FOF, and here is an example of a stock that a number of top funds have been building positions in.

Inphonic (INPC) is an online seller of wireless services, and trading at a recent $2.75, has seen its stock cut by 75% for a market cap of only $100M. It seems to have been slowly building a base near these 52-week lows. The fundamentals have been terrible, and this has to be a turnaround investment theme at this point. The founder got booted as CEO today, and the current president takes over the reigns. Some big guns think that it is a good buy, including (% of company owned):

Galleon 7.68%
Vardon 7.66%
Trafalet 7.25%
Tiger Global 4.7%
Potomac Capital 4.62%

These five hedge funds alone own 32% of the company. Regardless, I can't help singing this old 80's hip hop song when taking a look at this stock Inphonic (INPC).



Supersonic is a word when people start to listen
Especially bigger people, they pay close attention
You might not believe it, you might not even buy it
But when it comes to our lady (Beat Box), you might even try it

Supersonic
Supersonic


I introduced my own lyrics below:

Inphonic is at $3 and people start to listen
Especially bigger funds, they pay close attention
You might not believe it, you might not even buy it
But when it comes to the stock, you should just try it

Inphonic
Inphonic

Chart courtesy Bigcharts.com.
Disclosure: Don't own any but might buy some.

Don't know what a SPAC is? From the Wikipedia entry for SPACs:

Special Purpose Acquisition Companies (SPACs) are investment vehicles that allow public investors to invest in areas sought by private equity firms.