The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Masonite International Corp (NYSE:DOOR).
Masonite International Corp (NYSE:DOOR) shareholders have witnessed a decrease in enthusiasm from smart money in recent months. DOOR was in 21 hedge funds’ portfolios at the end of the third quarter of 2016. There were 27 hedge funds in our database with DOOR 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 Noble Corporation (NYSE:NE), MicroStrategy Incorporated (NASDAQ:MSTR), and Rexnord Corp (NYSE:RXN) to gather more data points.
Follow Masonite International Corp (NYSE:DOOR)
Follow Masonite International Corp (NYSE:DOOR)
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How have hedgies been trading Masonite International Corp (NYSE:DOOR)?
Heading into the fourth quarter of 2016, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 22% tumble from the second quarter of 2016. Hedge fund ownership of the stock has been volatile, though trending downward throughout the past year. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, 12 West Capital Management, managed by Joel Ramin, holds the largest position in Masonite International Corp (NYSE:DOOR). 12 West Capital Management has a $72.9 million position in the stock, comprising 10.5% of its 13F portfolio. Coming in second is Richard S. Pzena of Pzena Investment Management, with a $44.9 million position. Other peers with similar optimism consist of Jim Simons’ Renaissance Technologies, Phill Gross and Robert Atchinson’s Adage Capital Management and Shashin Shah’s Think Investments.
Because Masonite International Corp (NYSE:DOOR) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Dinakar Singh’s TPG-AXON Management LP dumped the biggest position of all the hedgies watched by Insider Monkey, totaling an estimated $24.4 million in stock, and Principal Global Investors’s Columbus Circle Investors was right behind this move, as the fund dropped about $10.8 million worth of shares. These moves are interesting, as total hedge fund interest fell by 6 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Masonite International Corp (NYSE:DOOR) but similarly valued. These stocks are Noble Corporation (NYSE:NE), MicroStrategy Incorporated (NASDAQ:MSTR), Rexnord Corp (NYSE:RXN), and Watts Water Technologies Inc (NYSE:WTS). This group of stocks’ market valuations are similar to DOOR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NE | 34 | 277566 | 1 |
| MSTR | 23 | 306704 | -3 |
| RXN | 16 | 191629 | -3 |
| WTS | 11 | 433841 | -2 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was $340 million in DOOR’s case. Noble Corporation (NYSE:NE) is the most popular stock in this table. On the other hand Watts Water Technologies Inc (NYSE:WTS) is the least popular one with only 11 bullish hedge fund positions. Masonite International Corp (NYSE:DOOR) 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 NE might be a better candidate to consider a long position in.
Disclosure: None
