The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have gone over 730 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 28th. In this article we look at what those investors think of Rogers Corporation (NYSE:ROG).
Rogers Corporation (NYSE:ROG) investors should pay attention to an increase in support from the world’s most elite money managers lately. ROG was in 19 hedge funds’ portfolios at the end of the second quarter of 2019. There were 9 hedge funds in our database with ROG holdings at the end of the previous quarter. Our calculations also showed that ROG isn’t among the 30 most popular stocks among hedge funds (view the video below).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
According to most shareholders, hedge funds are viewed as underperforming, outdated investment tools of yesteryear. While there are over 8000 funds with their doors open at present, We choose to focus on the top tier of this club, approximately 750 funds. Most estimates calculate that this group of people handle the lion’s share of the smart money’s total asset base, and by tracking their best equity investments, Insider Monkey has come up with many investment strategies that have historically outperformed the market. Insider Monkey’s flagship hedge fund strategy beat the S&P 500 index by around 5 percentage points annually since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We’re going to go over the key hedge fund action encompassing Rogers Corporation (NYSE:ROG).
How have hedgies been trading Rogers Corporation (NYSE:ROG)?
At Q2’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 111% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ROG over the last 16 quarters. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
The largest stake in Rogers Corporation (NYSE:ROG) was held by Fisher Asset Management, which reported holding $21.3 million worth of stock at the end of March. It was followed by Millennium Management with a $17.1 million position. Other investors bullish on the company included Citadel Investment Group, Tairen Capital, and Royce & Associates.
Consequently, key money managers were breaking ground themselves. Fisher Asset Management, managed by Ken Fisher, created the biggest position in Rogers Corporation (NYSE:ROG). Fisher Asset Management had $21.3 million invested in the company at the end of the quarter. Larry Chen and Terry Zhang’s Tairen Capital also initiated a $9.3 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, Dmitry Balyasny’s Balyasny Asset Management, and Ken Griffin’s Citadel Investment Group.
Let’s check out hedge fund activity in other stocks similar to Rogers Corporation (NYSE:ROG). These stocks are Rexnord Corporation (NYSE:RXN), Stitch Fix, Inc. (NASDAQ:SFIX), UMB Financial Corporation (NASDAQ:UMBF), and Balchem Corporation (NASDAQ:BCPC). This group of stocks’ market valuations are closest to ROG’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RXN | 20 | 209545 | -1 |
| SFIX | 28 | 261732 | 1 |
| UMBF | 16 | 80456 | 7 |
| BCPC | 9 | 64157 | 2 |
| Average | 18.25 | 153973 | 2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $78 million in ROG’s case. Stitch Fix, Inc. (NASDAQ:SFIX) is the most popular stock in this table. On the other hand Balchem Corporation (NASDAQ:BCPC) is the least popular one with only 9 bullish hedge fund positions. Rogers Corporation (NYSE:ROG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately ROG wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on ROG were disappointed as the stock returned -20.8% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.
