Hedge Funds Are Hoarding Shares of These 5 Smid-caps

Another popular smid-cap stock among the almost 800 funds that we monitor is Spirit AeroSystems Holdings, Inc. (NYSE:SPR), which counted the support of 44 of these firms at the end of the fourth quarter. Even though this figure represented a 12% decline from the prior quarter, the aggregate value of their holdings increased to $2.91 billion from $2.77 billion, as the stock gained 3.58% over the October-to-December period. These stakes accounted for 41.5% of the company’s total shares.

Among the Spirit AeroSystems Holdings, Inc. (NYSE:SPR) bulls is Matt Sirovich and Jeremy Mindich’s Scopia Capital, which disclosed ownership of 16.32 million shares, worth about $817 million as of December 31. The fund managers are probably not very happy with the stock’s performance this year, as shares have tumbled by over 8.3%, underperforming the S&P 500, which has lost 2.8% year-to-date. However, it should be noted that most of the losses were registered over the first few weeks of the year, and were part of a wider decline in the stock market. Most recently, the stock has done better, and that is likely to continue especially following the news that it was selected as one of seven subcontractors on Northrop Grumman Corporation (NYSE:NOC)’s new B-21 Bomber program.

Hertz Global Holdings Inc (NYSE:HTZ) was also very popular among the funds that we track. Even in spite of the 14.94% decline the stock experienced over the fourth quarter, the company counted 52 supporters in our database by the end of the period. Their holdings, valued at $2.48 billion on December 31, accounted for 39.4% of the company’s outstanding stock. Once again, Icahn Capital LP was the largest shareholder of record by the end of the fourth quarter, with 63.7 million shares valued at more than $906 million. A couple of days ago, Hertz Global Holdings Inc (NYSE:HTZ) announced the appointment of a new Senior Vice President of Global Franchise Operations. As of March 7, Robert Barton became responsible for the firm’s “worldwide franchise strategy and execution,” a press release explained.

Finally, there’s Restaurant Brands International Inc (NYSE:QSR), the parent company of Tim Hortons and Burger King Worldwide. As of the end of the fourth quarter, 29 funds among those we track were long the company, with their positions valued at $2.87 billion and accounting for 37.9% of the company’s outstanding stock. Among the company’s notable backers are Bill Ackman’s Pershing Square, which held 38.00 million shares on December 31, and Warren Buffett’s Berkshire Hathaway, with 8.43 million shares at the end of 2015.

Restaurant Brands International Inc (NYSE:QSR) reported fourth quarter earnings of $0.35 per share on February 16, above the $0.30 consensus estimate. Sales of $1.06 billion also beat expectations by $30 million. Following the earnings call, Sterne Agee reiterated an ‘Equal-weight’ rating on the stock, but lowered its price target from $36.00 $42.00 due to its limited risk/reward profile.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned in this article.