Barclays PLC (ADR) (NYSE:BCS) recently released its America’s Top Picks List, which includes the best alpha-generating ideas within each industry, on stocks that currently have an ‘Overweight’ rating from the investment firm. We decided to dig into its industrials sector picks, which included General Electric Company (NYSE:GE), Mobileye NV (NYSE:MBLY), and Mohawk Industries, Inc. (NYSE:MHK). The improvement in margins arising from the asset sales of GE Capital, and a dividend yield that heads the peer group are the main catalysts for General Electric Company (NYSE:GE). As for Mobileye NV (NYSE:MBLY), the company provides the most cost-effective solutions in the realm of advanced driver assistance systems (ADAS). The extremely scalable nature of the business provides the company further impetus to grow going forward as well. While Mohawk Industries, Inc. (NYSE:MHK) is set to benefit from the cost and revenue synergies in the second half of this year from its recently closed acquisitions of IVC Group and Kai, growth in residential and commercial construction will drive the sales in the company’s carpet and ceramic tile businesses. Moreover, the carpet segment is also set to benefit from decreasing raw material costs, while innovation is backing the ceramic segment. Let us take a look at the hedge fund sentiment towards these companies.
At the end of the first quarter, a total of 62 of the hedge funds tracked by Insider Monkey were bullish in General Electric Company (NYSE:GE), a change of 11% from the previous quarter. As for Mobileye NV (NYSE:MBLY), the hedge fund interest in the company increased by two percentage points to 4.8% at the end of March, as 35 firms had an investment in the company, as compared to 21 at the end of last year. Moving on to Mohawk Industries, Inc. (NYSE:MHK), a total of 56 funds had a bullish outlook on the company, a change of 24% from the end of the fourth quarter.
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Insider purchases are a strong indicator of how the company’s management sees its business prospects in the future. Francisco Dsouza and Marjin Dekkers, two Directors of General Electric Company (NYSE:GE) purchased 36,500 and 20,000 shares respectively during April, while no recent insider sales have been detected. Moving on to Mohawk Industries, Inc. (NYSE:MHK), insider Suzanne Helen has sold about 36,000 shares this year. However, it must be noted that sales are a much weaker signal about a stock price’s trend in the future as compared to purchases, as sales can be made for any number of reasons that have nothing to do with a bearish outlook on the stock.
Hedge fund activity in General Electric Company (NYSE:GE)
According to hedge fund experts at Insider Monkey, Ken Fisher‘s Fisher Asset Management had the biggest position in General Electric Company (NYSE:GE), worth close to $753 million, comprising 1.5% of its total 13F portfolio. The second-largest stake is held by Phill Gross and Robert Atchinson of Adage Capital Management, with a $357.1 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism comprise Eric W. Mandelblatt’s Soroban Capital Partners, David E. Shaw’s D E Shaw, and John A. Levin’s Levin Capital Strategies.
How have hedgies been trading Mohawk Industries, Inc. (NYSE:MHK)?
Of the funds tracked by Insider Monkey, Viking Global, managed by Andreas Halvorsen, holds the number one position in Mohawk Industries, Inc. (NYSE:MHK). Viking Global has an $815.6 million position in the stock, comprising 3.2% of its 13F portfolio. Coming in second is Robert Joseph Caruso of Select Equity Group, with a $378.5 million position; the fund has 3.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism comprise Stephen Mandel‘s Lone Pine Capital, Dan Loeb’s Third Point, and Daniel S. Och’s OZ Management.
How have hedgies been trading Mobileye NV (NYSE:MBLY)?
Alexander Mitchell’s Scopus Asset Management is one of the largest stockholders of Mobileye NV (NYSE:MBLY) within our database, holding 906,178 shares valued at $38.09 million. Other funds endorsing the stock include Dimitry Balyasny’s Balyasny Asset Management and Israel Englander‘s Millennium Asset Management, with respective stakes amounting to 521,400 shares valued at $21.92 million and 486,900 shares valued at $20.46 million.
Disclosure: None
