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 Atkore International Group Inc. (NYSE:ATKR) based on those filings.
Is Atkore International Group Inc. (NYSE:ATKR) a marvelous investment today? Money managers are turning bullish. The number of bullish hedge fund bets moved up by 2 recently. Our calculations also showed that atkr isn’t among the 30 most popular stocks among hedge funds. ATKR was in 19 hedge funds’ portfolios at the end of the first quarter of 2019. There were 17 hedge funds in our database with ATKR holdings at the end of the previous quarter.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Noam Gottesman, GLG Partners
We’re going to take a gander at the latest hedge fund action surrounding Atkore International Group Inc. (NYSE:ATKR).
What does the smart money think about Atkore International Group Inc. (NYSE:ATKR)?
Heading into the second quarter of 2019, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ATKR over the last 15 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Atkore International Group Inc. (NYSE:ATKR). AQR Capital Management has a $22.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Noam Gottesman of GLG Partners, with a $22.1 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish contain Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors.
Now, some big names have jumped into Atkore International Group Inc. (NYSE:ATKR) headfirst. Venator Capital Management, managed by Brandon Osten, established the most valuable position in Atkore International Group Inc. (NYSE:ATKR). Venator Capital Management had $1 million invested in the company at the end of the quarter. Minhua Zhang’s Weld Capital Management also initiated a $0.5 million position during the quarter. The only other fund with a new position in the stock is Michael Gelband’s ExodusPoint Capital.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Atkore International Group Inc. (NYSE:ATKR) but similarly valued. These stocks are Carbon Black, Inc. (NASDAQ:CBLK), Epizyme Inc (NASDAQ:EPZM), KEMET Corporation (NYSE:KEM), and Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA). This group of stocks’ market valuations are closest to ATKR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CBLK | 19 | 59849 | 2 |
| EPZM | 19 | 353318 | 1 |
| KEM | 19 | 154439 | -2 |
| KNSA | 10 | 107729 | 2 |
| Average | 16.75 | 168834 | 0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $169 million. That figure was $104 million in ATKR’s case. Carbon Black, Inc. (NASDAQ:CBLK) is the most popular stock in this table. On the other hand Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) is the least popular one with only 10 bullish hedge fund positions. Atkore International Group Inc. (NYSE:ATKR) is not the most popular stock in this group but hedge fund interest is still above average. 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. Hedge funds were also right about betting on ATKR as the stock returned 9.1% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.
