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"The end to the U.S. Government shutdown, reports of progress on China-U.S. trade talks, and the Federal Reserve’s confirmation that it did not plan further interest rate hikes in 2019 allayed investor fears and drove U.S. markets substantially higher in the first quarter of the year. Global markets followed suit pretty much across the board delivering what some market participants described as a “V-shaped” recovery," This is how Evermore Global Value summarized the first quarter in its investor letter. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards one of the stocks hedge funds invest in.

Dollar Tree, Inc. (NASDAQ:DLTR) was in 48 hedge funds' portfolios at the end of March. DLTR has experienced a decrease in support from the world's most elite money managers of late. There were 53 hedge funds in our database with DLTR holdings at the end of the previous quarter. Our calculations also showed that dltr isn't among the 30 most popular stocks among hedge funds.

In the eyes of most market participants, hedge funds are perceived as unimportant, outdated financial tools of years past. While there are greater than 8000 funds with their doors open today, Our researchers look at the upper echelon of this group, approximately 750 funds. It is estimated that this group of investors command bulk of the hedge fund industry's total asset base, and by following their first-class stock picks, Insider Monkey has deciphered a number of investment strategies that have historically outstripped the broader indices. Insider Monkey's flagship hedge fund strategy beat the S&P 500 index by around 5 percentage points a year since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.

Let's take a gander at the recent hedge fund action surrounding Dollar Tree, Inc. (NASDAQ:DLTR).

Hedge fund activity in Dollar Tree, Inc. (NASDAQ:DLTR)

At the end of the first quarter, a total of 48 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards DLTR over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).