Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Cambrex Corporation (NYSE:CBM).
Cambrex Corporation (NYSE:CBM) has seen an increase in enthusiasm from smart money lately. CBM was in 25 hedge funds’ portfolios at the end of September. There were 21 hedge funds in our database with CBM positions at the end of the previous quarter. At the end of this article we will also compare CBM to other stocks, including Cogent Communications Group, Inc. (NASDAQ:CCOI), Luxoft Holding Inc (NYSE:LXFT), and Phibro Animal Health Corp (NASDAQ:PAHC) to get a better sense of its popularity.
Follow Cambrex Corp (NYSE:CBM)
Follow Cambrex Corp (NYSE:CBM)
In the eyes of most shareholders, hedge funds are assumed to be underperforming, old investment tools of yesteryear. While there are greater than 8000 funds in operation at the moment, Our researchers hone in on the leaders of this group, around 700 funds. These hedge fund managers orchestrate the majority of the hedge fund industry’s total asset base, and by keeping an eye on their unrivaled stock picks, Insider Monkey has unearthed many investment strategies that have historically outrun the broader indices. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, we’re going to take a look at the fresh action surrounding Cambrex Corporation (NYSE:CBM).
How have hedgies been trading Cambrex Corporation (NYSE:CBM)?
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jim Simons’ Renaissance Technologies has the most valuable position in Cambrex Corporation (NYSE:CBM), worth close to $13.8 million, comprising less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is Chuck Royce of Royce & Associates, with a $13.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish encompass John Overdeck and David Siegel’s Two Sigma Advisors, Robert B. Gillam’s McKinley Capital Management and Cliff Asness’s AQR Capital Management.
Consequently, key money managers were leading the bulls’ herd. AlphaOne Capital Partners, managed by Paul Hondros, established the most valuable position in Cambrex Corporation (NYSE:CBM). AlphaOne Capital Partners had $3.8 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $2.8 million investment in the stock during the quarter. The other funds with brand new CBM positions are Andy Redleaf’s Whitebox Advisors, Peter Muller’s PDT Partners, and D. E. Shaw’s D E Shaw.
Let’s go over hedge fund activity in other stocks similar to Cambrex Corporation (NYSE:CBM). These stocks are Cogent Communications Group, Inc. (NASDAQ:CCOI), Luxoft Holding Inc (NYSE:LXFT), Phibro Animal Health Corp (NASDAQ:PAHC), and Stag Industrial Inc (NYSE:STAG). All of these stocks’ market caps match CBM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CCOI | 17 | 247660 | -5 |
| LXFT | 17 | 131251 | 3 |
| PAHC | 16 | 29428 | 1 |
| STAG | 9 | 69982 | 0 |
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $88 million in CBM’s case. Cogent Communications Group, Inc. (NASDAQ:CCOI) is the most popular stock in this table with 17 funds reporting stakes, while Stag Industrial Inc (NYSE:STAG) is the least popular one. Compared to these stocks Cambrex Corporation (NYSE:CBM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
