The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Ingles Markets, Incorporated (NASDAQ:IMKTA) .
Ingles Markets, Incorporated (NASDAQ:IMKTA) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. At the end of this article we will also compare IMKTA to other stocks including Carmike Cinemas, Inc. (NASDAQ:CKEC), Veeco Instruments Inc. (NASDAQ:VECO), and Harsco Corporation (NYSE:HSC) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, let’s take a look at the fresh action surrounding Ingles Markets, Incorporated (NASDAQ:IMKTA).
What have hedge funds been doing with Ingles Markets, Incorporated (NASDAQ:IMKTA)?
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter of 2016. By comparison, 12 hedge funds held shares or bullish call options in IMKTA heading into this year. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Mario Gabelli of GAMCO Investors holds the most valuable position in Ingles Markets, Incorporated (NASDAQ:IMKTA) which has a $49.4 million position in the stock. The second largest stake is held by Joel Greenblatt of Gotham Asset Management, with a $1.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that hold long positions include Cliff Asness’ AQR Capital Management, D. E. Shaw’s D E Shaw which is one of the biggest hedge funds in the world and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Due to the fact that Ingles Markets, Incorporated (NASDAQ:IMKTA) has gone through bearish sentiment from hedge fund managers, we can see that there was a specific group of fund managers who sold off their full holdings in the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group cashed in the biggest stake of all the hedgies followed by Insider Monkey, worth an estimated $0.7 million in call options.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ingles Markets, Incorporated (NASDAQ:IMKTA) but similarly valued. These stocks are Carmike Cinemas, Inc. (NASDAQ:CKEC), Veeco Instruments Inc. (NASDAQ:VECO), Harsco Corporation (NYSE:HSC), and Federal Signal Corporation (NYSE:FSS). This group of stocks’ market caps match IMKTA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CKEC | 18 | 238556 | -5 |
| VECO | 11 | 133447 | 1 |
| HSC | 19 | 86982 | 4 |
| FSS | 17 | 83249 | -2 |
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $136 million. That figure was $55 million in IMKTA’s case. Harsco Corporation (NYSE:HSC) is the most popular stock in this table. On the other hand Veeco Instruments Inc. (NASDAQ:VECO) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Ingles Markets, Incorporated (NASDAQ:IMKTA) is even less popular than VECO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
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