A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Analogic Corporation (NASDAQ:ALOG) .
Analogic Corporation (NASDAQ:ALOG) has seen a decrease in support from the world’s most successful money managers in recent months. ALOG was in 9 hedge funds’ portfolios at the end of September. There were 11 hedge funds in our database with ALOG positions at the end of the previous quarter. At the end of this article we will also compare ALOG to other stocks including McEwen Mining Inc (NYSE:MUX), NuStar GP Holdings, LLC (NYSE:NSH), and Comfort Systems USA, Inc. (NYSE:FIX) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, we’re going to analyze the new action surrounding Analogic Corporation (NASDAQ:ALOG).
What have hedge funds been doing with Analogic Corporation (NASDAQ:ALOG)?
At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in ALOG over the last 5 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Chuck Royce’s Royce & Associates has the most valuable position in Analogic Corporation (NASDAQ:ALOG), worth close to $52.2 million. The second most bullish fund manager is Mariko Gordon of Daruma Asset Management which holds a $36.9 million position; 2.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors with similar optimism contain Joel Greenblatt’s Gotham Asset Management, Cliff Asness’ AQR Capital Management and Ken Griffin’s Citadel Investment Group. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. At the top of the heap, Neil Chriss’ Hutchin Hill Capital dumped the largest investment of all the investors tracked by Insider Monkey, comprising an estimated $1.2 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund cut about $0.1 million worth of shares.
Let’s now review hedge fund activity in other stocks similar to Analogic Corporation (NASDAQ:ALOG). We will take a look at McEwen Mining Inc (NYSE:MUX), NuStar GP Holdings, LLC (NYSE:NSH), Comfort Systems USA, Inc. (NYSE:FIX), and Sturm, Ruger & Company (NYSE:RGR). This group of stocks’ market valuations are closest to ALOG’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MUX | 8 | 17065 | -2 |
| NSH | 4 | 6488 | -2 |
| FIX | 20 | 135484 | -1 |
| RGR | 15 | 76647 | -1 |
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $99 million in ALOG’s case. Comfort Systems USA, Inc. (NYSE:FIX) is the most popular stock in this table. On the other hand NuStar GP Holdings, LLC (NYSE:NSH) is the least popular one with only 4 bullish hedge fund positions. Analogic Corporation (NASDAQ:ALOG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FIX might be a better candidate to consider taking a long position in.
Disclosure: None
