As we already know from media reports and hedge fund investor letters, many hedge funds lost money in the third quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with healthcare among them. Nevertheless, most investors decided to stick to their bullish theses and their long-term focus allows us to profit from the recent declines. In particular, let’s take a look at what hedge funds think about Global Brass and Copper Holdings Inc (NYSE:BRSS) in this article.
Global Brass and Copper Holdings Inc (NYSE:BRSS) shareholders have witnessed an increase in enthusiasm from smart money of late. At the end of this article, we will also compare Global Brass and Copper Holdings Inc (NYSE:BRSS) to other stocks, including San Juan Basin Royalty Trust (NYSE:SJT), MainSource Financial Group Inc. (NASDAQ:MSFG), and CNinsure Inc. (ADR) (NASDAQ:CISG) to get a better sense of its popularity.
Follow Global Brass & Copper Holdings Inc. (NYSE:BRSS)
Follow Global Brass & Copper Holdings Inc. (NYSE:BRSS)
To most market participants, hedge funds are perceived as worthless, outdated investment vehicles of the past. While there are over 8000 funds trading at the moment, our researchers look at the bigwigs of this club, around 700 funds. These hedge fund managers direct most of the smart money’s total capital, and by tailing their finest equity investments, Insider Monkey has come up with various investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, let’s take a gander at the new action surrounding Global Brass and Copper Holdings Inc (NYSE:BRSS).
How have hedgies been trading Global Brass and Copper Holdings Inc (NYSE:BRSS)?
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 11% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies has the most valuable position in Global Brass and Copper Holdings Inc (NYSE:BRSS), worth close to $7.1 million, accounting for less than 0.1% of its total 13F portfolio. On Renaissance Technologies’ heels is Robert B. Gillam of McKinley Capital Management, with a $4.9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism comprise David Dreman’s Dreman Value Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Cliff Asness’ AQR Capital Management.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. PEAK6 Capital Management, managed by Matthew Hulsizer, created the most outsized call position in Global Brass and Copper Holdings Inc (NYSE:BRSS). PEAK6 Capital Management had $2.4 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are Joel Greenblatt’s Gotham Asset Management, and Ken Brodkowitz and Mike Vermut’s Newland Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Global Brass and Copper Holdings Inc (NYSE:BRSS) but similarly valued. These stocks are San Juan Basin Royalty Trust (NYSE:SJT), MainSource Financial Group Inc. (NASDAQ:MSFG), CNinsure Inc. (ADR) (NASDAQ:CISG), and China Cord Blood Corp (NYSE:CO). All of these stocks’ market caps are closest to Global Brass and Copper Holdings Inc (NYSE:BRSS)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SJT | 7 | 60838 | -2 |
| MSFG | 4 | 5917 | 1 |
| CISG | 4 | 3706 | -4 |
| CO | 6 | 14221 | 1 |
As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $36 million in Global Brass and Copper Holdings Inc (NYSE:BRSS)’s case. San Juan Basin Royalty Trust (NYSE:SJT) is the most popular stock in this table. On the other hand, MainSource Financial Group Inc. (NASDAQ:MSFG) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Global Brass and Copper Holdings Inc (NYSE:BRSS) 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.
