The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. What do these smart investors think about Constellium SE (NYSE:CSTM)?
Constellium SE (NYSE:CSTM) has experienced an increase in support from the world’s most elite money managers in recent months. Constellium SE (NYSE:CSTM) was in 36 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 50. There were 35 hedge funds in our database with CSTM positions at the end of the fourth quarter. Our calculations also showed that CSTM isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Today there are a lot of formulas investors have at their disposal to analyze their stock investments. A duo of the most under-the-radar formulas are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace their index-focused peers by a healthy margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Scott Ferguson of Sachem Head Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s take a gander at the latest hedge fund action regarding Constellium SE (NYSE:CSTM).
Do Hedge Funds Think CSTM Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 36 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CSTM over the last 23 quarters. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
More specifically, Sachem Head Capital was the largest shareholder of Constellium SE (NYSE:CSTM), with a stake worth $55.3 million reported as of the end of March. Trailing Sachem Head Capital was Marshall Wace LLP, which amassed a stake valued at $51.4 million. Nut Tree Capital, Samlyn Capital, and Bronson Point Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Nut Tree Capital allocated the biggest weight to Constellium SE (NYSE:CSTM), around 10.41% of its 13F portfolio. Bronson Point Partners is also relatively very bullish on the stock, designating 10.31 percent of its 13F equity portfolio to CSTM.
Now, specific money managers were leading the bulls’ herd. DSAM Partners, managed by Guy Shahar, initiated the most outsized position in Constellium SE (NYSE:CSTM). DSAM Partners had $18.2 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also initiated a $5.9 million position during the quarter. The following funds were also among the new CSTM investors: Adam Usdan’s Trellus Management Company, Jed Nussdorf’s Soapstone Capital, and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).
Let’s now review hedge fund activity in other stocks similar to Constellium SE (NYSE:CSTM). We will take a look at Bottomline Technologies (de), Inc. (NASDAQ:EPAY), USANA Health Sciences, Inc. (NYSE:USNA), Century Communities, Inc (NYSE:CCS), The RealReal, Inc. (NASDAQ:REAL), Chesapeake Utilities Corporation (NYSE:CPK), EHang Holdings Limited (NASDAQ:EH), and Liberty Oilfield Services Inc. (NYSE:LBRT). This group of stocks’ market valuations match CSTM’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EPAY | 19 | 98039 | 1 |
| USNA | 19 | 250382 | -3 |
| CCS | 24 | 123486 | 6 |
| REAL | 24 | 399233 | -8 |
| CPK | 6 | 6692 | 2 |
| EH | 4 | 7063 | 2 |
| LBRT | 10 | 41393 | 2 |
| Average | 15.1 | 132327 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $132 million. That figure was $377 million in CSTM’s case. Century Communities, Inc (NYSE:CCS) is the most popular stock in this table. On the other hand EHang Holdings Limited (NASDAQ:EH) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Constellium SE (NYSE:CSTM) is more popular among hedge funds. Our overall hedge fund sentiment score for CSTM is 77.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 19.3% in 2021 through June 25th but still managed to beat the market by 4.8 percentage points. Hedge funds were also right about betting on CSTM as the stock returned 31.8% since the end of March (through 6/25) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Constellium Se (NYSE:CSTM)
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Disclosure: None. This article was originally published at Insider Monkey.
