In this article, we will take a look at the top 10 stocks to sell now according to Christopher Hillary’s Roubaix Capital. You can skip our detailed analysis of Christopher Hillary’s history, investment philosophy, and hedge fund performance and go directly to 5 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital.
Roubaix Capital was founded by Christopher Hillary in 2015. From 2015 to the present, Hillary is serving as the CEO and portfolio manager at Roubaix Capital. His experience expands from working as a generalist analyst at Marsico Capital Management from 2001 to 2004 to serving as the senior analyst at Independence Capital Assets Partners (ICAP) from 2004 to 2015. He got his MBA degree from the University of Colorado.
The investment philosophy of Christopher Hillary employs a long/short equity strategy. Hillary targets small- and medium-cap stocks. Since small- and medium-sized businesses are more affected by the market drivers hence they can create or destroy value more significantly over the investment cycle.
At the end of the September quarter, Roubaix Capital has accumulated a total of $152.54 million in managed 13F securities. In the third quarter of 2021, the hedge fund has invested 28.74% of the portfolio in the IT sector.
In 2020, the hedge fund gained an impressive 46.17% on a net basis while 17.49% for the HFRI Equity Hedge Index and 19.96% for the Russell 2000 Index.
Our Methodology
This list is compiled by picking the top sales of Roubaix Capital in the third quarter of 2021. The fund sold its entire stakes in the following companies in the third quarter.
10 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital
10. Designer Brands Inc. (NYSE:DBI)
Number of Hedge Fund Holders: 19
Designer Brands Inc. (NYSE:DBI) is an Ohio-based company working in the consumer discretionary sector. It designs, manufactures, and sells retail footwear and accessories for all genders in North America. As of February 2021, the company owned and operated 663 stores.
Roubaix Capital sold 175,058 shares, worth $2.9 million, in Designer Brands Inc. (NYSE:DBI) in the third quarter of 2021.
On September 01, 2021, Deutsche Bank raised its price target on Designer Brands Inc. (NYSE:DBI) to $19 from $18 and maintained a “Hold” rating. Analyst Gabriella Carbone issued this rating due to impressive Q2 results.
According to the Insider Monkey’s database tracking 867 hedge funds in the third quarter of 2021, 19 hedge funds have stakes in Designer Brands Inc. (NYSE:DBI), valued at $130 million. The number has decreased from 23 in the previous quarter, valued at $133 million.
9. Stoneridge, Inc. (NYSE:SRI)
Number of Hedge Fund Holders: 9
Stoneridge, Inc. (NYSE:SRI) is based in Michigan that designs and manufactures automobile parts, electrical and electronic components for automotive, commercial, motorcycle, and agricultural vehicles.
Roubaix Capital sold its entire stake in the company in the third quarter.
On October 13, 2021, Barrington downgraded its rating on the stock to “Market Perform” from “Outperform.” Barrington’s analyst Gary Prestopino said that the downgraded rating was due to lower-than-expected Q3 results and supply chain-related challenges.
According to Insider Monkey’s database, Stoneridge, Inc. (NYSE:SRI) is in the portfolio of 9 hedge funds at the end of the third quarter of 2021, valued at $39.75 million.
Chuck Royce’s Royce & Associates holds the highest number of shares in Stoneridge, Inc. (NYSE:SRI) among hedge fund investors.
8. Astronics Corporation (NASDAQ:ATRO)
Number of Hedge Fund Holders: 13
Astronics Corporation (NASDAQ:ATRO) is based in New York and provides services in the industrial sector. The company is engaged in designing, and manufacturing products for aerospace, and defense industries in the US, North America, Asia, Europe, and internationally.
Founded in 1968, the company has attracted investments from 13 hedge funds, valued at $79.87 million, as tracked by Insider Monkey at the end of the third quarter of 2021, down from 19 hedge funds in the previous quarter, valued at $95 million.
In the third quarter of 2021, Christopher Hillary’s Roubaix Capital sold its 178,038 shares in Astronics Corporation (NASDAQ:ATRO) which were valued at $3.12 million.
7. Sierra Wireless, Inc. (NASDAQ:SWIR)
Number of Hedge Fund Holders: 14
Sierra Wireless, Inc. (NASDAQ:SWIR) is a Canadian company operating in the technology sector. The company designs and provides Internet of Things (IoT) solutions like cloud management software, cellular modules, and connectivity services.
Christopher Hillary’s Roubaix Capital sold 165,413 shares of the company in the third quarter, valued at $3.14 million. The fund had no stake in the company as of the start of the fourth quarter.
14 hedge funds have stakes in Sierra Wireless, Inc. (NASDAQ:SWIR) as of the third quarter end of 2021, valued at $178.67 million, according to the database of Insider Monkey.
6. Deluxe Corporation (NYSE:DLX)
Number of Hedge Fund Holders: 11
Roubaix Capital sold all of its shares in Deluxe Corporation (NYSE:DLX) in the third quarter of 2021. The company provides services in the communication services sector by offering technology-enabled financial and advertising solutions to small businesses.
In the September quarter of 2021, Deluxe Corporation (NYSE:DLX) posted an EPS of $1.10, beating the market consensus by $0.02. Revenue for the third quarter totaled $532 million, beating the market estimates by $11.4 million.
As of the end of the third quarter of 2021, Roubaix Capital sold all of its 67,327 shares of the company, worth $3.22 million. These shares formed 2% of the 13F portfolio in the previous quarter.
On September 01, 2021, Cowen initiated its coverage on Deluxe Corporation (NYSE:DLX) with an “Outperform” rating and a price target of $55.
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Disclosure. None. 10 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital is originally published on Insider Monkey.
