We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of IDEX Corporation (NYSE:IEX).
Hedge fund interest in IDEX Corporation (NYSE:IEX) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Agnico-Eagle Mines Limited (USA) (NYSE:AEM), and Flowserve Corporation (NYSE:FLS) to gather more data points.
Follow Idex Corp (NYSE:IEX)
Follow Idex Corp (NYSE:IEX)
Today there are a multitude of formulas stock market investors have at their disposal to grade their stock investments. A pair of the most underrated formulas are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the S&P 500 by a superb margin (see the details here).
Keeping this in mind, we’re going to view the new action regarding IDEX Corporation (NYSE:IEX).
What does the smart money think about IDEX Corporation (NYSE:IEX)?
At the end of the third quarter, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged over the quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, GAMCO Investors, managed by Mario Gabelli, holds the number one position in IDEX Corporation (NYSE:IEX). GAMCO Investors has a $71.6 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Impax Asset Management, led by Ian Simm, holding a $35.6 million position; 2.5% of its 13F portfolio is allocated to the company. Other peers that hold long positions consist of Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, Jonathan Barrett and Paul Segal’s Luminus Management, and Chuck Royce’s Royce & Associates.
Seeing as IDEX Corporation (NYSE:IEX) has experienced a decline in interest from the smart money, it’s safe to say that there exists a select few hedgies who sold off their full holdings by the end of the third quarter. Intriguingly, Steve Cohen’s Point72 Asset Management dropped the largest stake of the 700 funds watched by Insider Monkey, totaling an estimated $27.3 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund dropped about $2.3 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as IDEX Corporation (NYSE:IEX) but similarly valued. We will take a look at Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Agnico-Eagle Mines Limited (USA) (NYSE:AEM), Flowserve Corporation (NYSE:FLS), and Open Text Corporation (USA) (NASDAQ:OTEX). This group of stocks’ market valuations match IEX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GOLD | 16 | 164516 | 2 |
| AEM | 25 | 636744 | 5 |
| FLS | 25 | 642663 | -7 |
| OTEX | 18 | 96387 | -1 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $385 million, compared to $196 million in IEX’s case. Agnico-Eagle Mines Limited (USA) (NYSE:AEM) is the most popular stock in this table. On the other hand Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks IDEX Corporation (NYSE:IEX) is even less popular than GOLD. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
