The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Carpenter Technology Corporation (NYSE:CRS).
Carpenter Technology Corporation (NYSE:CRS) has experienced a decrease in enthusiasm from smart money lately. Carpenter Technology Corporation (NYSE:CRS) was in 10 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 16. Our calculations also showed that CRS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Ken Fisher of Fisher Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. We go through lists like the 10 best EV 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 peek at the fresh hedge fund action regarding Carpenter Technology Corporation (NYSE:CRS).
Do Hedge Funds Think CRS Is A Good Stock To Buy Now?
Heading into the third quarter of 2021, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -29% from the first quarter of 2020. Below, you can check out the change in hedge fund sentiment towards CRS over the last 24 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.
When looking at the institutional investors followed by Insider Monkey, Ken Fisher’s Fisher Asset Management has the most valuable position in Carpenter Technology Corporation (NYSE:CRS), worth close to $22.9 million, comprising less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is Royce & Associates, managed by Chuck Royce, which holds a $21.9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish include D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Royce & Associates allocated the biggest weight to Carpenter Technology Corporation (NYSE:CRS), around 0.15% of its 13F portfolio. Gotham Asset Management is also relatively very bullish on the stock, designating 0.03 percent of its 13F equity portfolio to CRS.
Judging by the fact that Carpenter Technology Corporation (NYSE:CRS) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedgies that decided to sell off their entire stakes by the end of the second quarter. Interestingly, Peter Muller’s PDT Partners sold off the largest investment of all the hedgies followed by Insider Monkey, valued at an estimated $0.5 million in stock. Greg Eisner’s fund, Engineers Gate Manager, also sold off its stock, about $0.4 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 4 funds by the end of the second quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Carpenter Technology Corporation (NYSE:CRS) but similarly valued. These stocks are Palomar Holdings, Inc. (NASDAQ:PLMR), Docebo Inc. (NASDAQ:DCBO), Nexgen Energy Ltd. (NYSE:NXE), NMI Holdings Inc (NASDAQ:NMIH), Janus International Group Inc (NYSE:JBI), GCM Grosvenor Inc. (NASDAQ:GCMG), and Park National Corporation (NYSE:PRK). All of these stocks’ market caps are similar to CRS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PLMR | 6 | 8596 | -5 |
| DCBO | 6 | 283168 | -4 |
| NXE | 11 | 41335 | -2 |
| NMIH | 21 | 200981 | -4 |
| JBI | 23 | 362844 | -4 |
| GCMG | 24 | 212751 | 7 |
| PRK | 6 | 3844 | 1 |
| Average | 13.9 | 159074 | -1.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.9 hedge funds with bullish positions and the average amount invested in these stocks was $159 million. That figure was $67 million in CRS’s case. GCM Grosvenor Inc. (NASDAQ:GCMG) is the most popular stock in this table. On the other hand Palomar Holdings, Inc. (NASDAQ:PLMR) is the least popular one with only 6 bullish hedge fund positions. Carpenter Technology Corporation (NYSE:CRS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CRS is 30.9. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 gained 25.7% in 2021 through September 27th and surpassed the market again by 6.2 percentage points. Unfortunately CRS wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CRS investors were disappointed as the stock returned -15.1% since the end of June (through 9/27) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Carpenter Technology Corp (NYSE:CRS)
Follow Carpenter Technology Corp (NYSE:CRS)
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Disclosure: None. This article was originally published at Insider Monkey.
