The government requires hedge funds and wealthy investors that crossed the $100 million equity holdings threshold are required to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31. We at Insider Monkey have made an extensive database of nearly 750 of those elite funds and famous investors’ filings. In this article, we analyze how these elite funds and prominent investors traded SPX Corporation (NYSE:SPXC) based on those filings.
Is SPX Corporation (NYSE:SPXC) the right investment to pursue these days? The smart money is turning bullish. The number of bullish hedge fund bets went up by 4 in recent months. Our calculations also showed that spxc isn’t among the 30 most popular stocks among hedge funds.
In the 21st century investor’s toolkit there are plenty of methods market participants use to evaluate their holdings. A duo of the most underrated methods are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the best picks of the best fund managers can outperform the market by a solid amount (see the details here).
We’re going to analyze the fresh hedge fund action regarding SPX Corporation (NYSE:SPXC).
What have hedge funds been doing with SPX Corporation (NYSE:SPXC)?
At Q1’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 27% from one quarter earlier. On the other hand, there were a total of 14 hedge funds with a bullish position in SPXC a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
Among these funds, Selz Capital held the most valuable stake in SPX Corporation (NYSE:SPXC), which was worth $25 million at the end of the first quarter. On the second spot was Corsair Capital Management which amassed $20 million worth of shares. Moreover, D E Shaw, Ancora Advisors, and Millennium Management were also bullish on SPX Corporation (NYSE:SPXC), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, some big names were breaking ground themselves. PEAK6 Capital Management, managed by Matthew Hulsizer, initiated the largest call position in SPX Corporation (NYSE:SPXC). PEAK6 Capital Management had $3.5 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $2.8 million investment in the stock during the quarter. The other funds with brand new SPXC positions are Ken Griffin’s Citadel Investment Group, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Minhua Zhang’s Weld Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to SPX Corporation (NYSE:SPXC). These stocks are BrightView Holdings, Inc. (NYSE:BV), STAAR Surgical Company (NASDAQ:STAA), Callaway Golf Company (NYSE:ELY), and Ebix Inc (NASDAQ:EBIX). This group of stocks’ market valuations resemble SPXC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BV | 9 | 225251 | -1 |
| STAA | 21 | 611663 | 1 |
| ELY | 26 | 145044 | 3 |
| EBIX | 22 | 154046 | 4 |
| Average | 19.5 | 284001 | 1.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $284 million. That figure was $111 million in SPXC’s case. Callaway Golf Company (NYSE:ELY) is the most popular stock in this table. On the other hand BrightView Holdings, Inc. (NYSE:BV) is the least popular one with only 9 bullish hedge fund positions. SPX Corporation (NYSE:SPXC) 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately SPXC wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); SPXC investors were disappointed as the stock returned -12.8% during the same time period 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 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
