How Hedge Funds Traded Firearms Stocks in Q2

#3 Smith & Wesson Holding Corp (NASDAQ:SWHC)

– Number of Hedge Fund Shareholders (as of June 30): 20
– Total Value of Hedge Funds’ Holdings (as of June 30): $136.89 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 9.00%

Like the previously-mentioned firearms stocks on our list, more smart money funds sold out of Smith & Wesson Holding Corp (NASDAQ:SWHC) in the second quarter than the number of funds that bought in. According to our database, 20 funds were long Smith & Wesson Holding Corp at the end of June, versus 24 at the end of March. Those 20 funds held more valuable positions in Smith & Wesson on June 30 in aggregate than the 24 did on March 31 however, as they held $136.89 million worth of Smith & Wesson shares at the end of June versus $121.78 million worth of holdings on March 31. Among the funds that raised their stakes was Robert B. Gillam‘s McKinley Capital Management, which bumped up its holding in the stock by 62% during the second quarter, to 295,974 shares.

#2 Vista Outdoor Inc (NYSE:VSTO)

– Number of Hedge Fund Shareholders (as of June 30): 27
– Total Value of Hedge Funds’ Holdings (as of June 30): $631.08 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 21.80%

In contrast to the less popular firearms stocks, Vista Outdoor gained popularity among the smart money set in the second quarter in terms of the total number of shareholders of the stock. 27 institutions that we track were long Vista Outdoor Inc (NYSE:VSTO) at the end of the second quarter, up by four quarter-over-quarter. Like the smart money, analysts also like Vista Outdoor. Of the seven analysts covering the stock, five have ‘Buy’ ratings on it, while two have ‘Hold’ ratings, and none have ‘Sell’ ratings. Among the more recent analyst commentary, KeyCorp set a $48 price target on it and raised its rating to ‘Overweight’ from ‘Sector Weight’. Given that Vista Outdoor sells other things besides guns and ammo, the company benefits more from the strong U.S. economy.

#1 Cabelas Inc (NYSE:CAB)

– Number of Hedge Fund Shareholders (as of June 30): 27
– Total Value of Hedge Funds’ Holdings (as of June 30): $661.42 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 19.40%

With 27 hedge fund holders among those in our database, up by four from the previous quarter, Cabelas Inc (NYSE:CAB) is the most popular firearms-related stock on our list (Cabelas sells firearms among other things). Given all the media attention around the subject, some of the funds were undoubtedly long Cabelas due to the company’s potential to merge with Bass Pro Shops. The two companies would be able to unlock substantial synergies if a merger between them occurred. So far, however, nothing concrete has materialized. Ken Fisher‘s Fisher Asset Management owned around 1.00 million Cabelas shares on June 30.

Disclosure: None