The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Hyster-Yale Materials Handling Inc (NYSE:HY) .
Hyster-Yale Materials Handling Inc (NYSE:HY) investors should pay attention to an increase in hedge fund sentiment lately. HY was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. There were 9 hedge funds in our database with HY positions at the end of the previous quarter. 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 Golub Capital BDC Inc (NASDAQ:GBDC), Boise Cascade Co (NYSE:BCC), and Grupo Supervielle SA -ADR (NYSE:SUPV) to gather more data points.
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With all of this in mind, let’s take a peek at the recent action surrounding Hyster-Yale Materials Handling Inc (NYSE:HY).
How are hedge funds trading Hyster-Yale Materials Handling Inc (NYSE:HY)?
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in HY over the last 5 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Ric Dillon’s Diamond Hill Capital has the most valuable position in Hyster-Yale Materials Handling Inc (NYSE:HY), worth close to $14.8 million. The second largest stake is held by Chuck Royce of Royce & Associates which holds a $13.4 million position. Some other professional money managers that hold long positions contain Ken Fisher’s Fisher Asset Management, Ken Griffin’s Citadel Investment Group and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these elite funds are among our list of the 100 best performing elite funds which is based on the performance of their 13F long positions in non-microcap stocks.
As aggregate interest increased, specific money managers were breaking ground themselves. Highbridge Capital Management, led by Glenn Russell Dubin, assembled the biggest position in Hyster-Yale Materials Handling Inc (NYSE:HY). Highbridge Capital Management had $0.5 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0.2 million investment in the stock during the quarter. The only other fund with a brand new HY position is PEAK6 Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Hyster-Yale Materials Handling Inc (NYSE:HY) but similarly valued. We will take a look at Golub Capital BDC Inc (NASDAQ:GBDC), Boise Cascade Co (NYSE:BCC), Grupo Supervielle SA -ADR (NYSE:SUPV), and Marcus & Millichap Inc (NYSE:MMI). This group of stocks’ market caps are similar to HY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GBDC | 7 | 32186 | -1 |
| BCC | 15 | 50761 | -1 |
| SUPV | 10 | 168359 | 0 |
| MMI | 12 | 100363 | -1 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $39 million in HY’s case. Boise Cascade Co (NYSE:BCC) is the most popular stock in this table. On the other hand Golub Capital BDC Inc (NASDAQ:GBDC) is the least popular one with only 7 bullish hedge fund positions. Hyster-Yale Materials Handling Inc (NYSE:HY) 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 BCC might be a better candidate to consider taking a long position in.
Disclosure: None
