Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Belden Inc. (NYSE:BDC) in this article.
Is Belden Inc. (NYSE:BDC) undervalued? Hedge funds are becoming hopeful. The number of bullish hedge fund positions went up by 9 in recent months. Belden Inc. (NYSE:BDC) was in 22 hedge funds’ portfolios at the end of the third quarter of 2015. There were 13 hedge funds in our database with Belden Inc. (NYSE:BDC) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Corporate Office Properties Trust (NYSE:OFC), Glacier Bancorp, Inc. (NASDAQ:GBCI), and Nord Anglia Education Inc (NYSE:NORD) to gather more data points.
Follow Belden Inc. (NYSE:BDC)
Follow Belden Inc. (NYSE:BDC)
To most traders, hedge funds are seen as worthless, outdated financial tools of years past. While there are over 8000 funds trading at present, our researchers hone in on the top tier of this club, around 700 funds. These hedge fund managers shepherd the lion’s share of the hedge fund industry’s total capital, and by monitoring their highest performing stock picks, Insider Monkey has determined many investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, let’s take a gander at the new action regarding Belden Inc. (NYSE:BDC).
How have hedgies been trading Belden Inc. (NYSE:BDC)?
Heading into Q4, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 69% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Matthew Lindenbaum’s Basswood Capital has the most valuable position in Belden Inc. (NYSE:BDC), worth close to $30.8 million, comprising 1.5% of its total 13F portfolio. Coming in second is Anand Parekh of Alyeska Investment Group, with a $25.4 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions comprise D E Shaw, Glenn Russell Dubin’s Highbridge Capital Management, and John Croghan and Richard Fradin’s Rail-Splitter Capital Management.
Now, some big names have jumped into Belden Inc. (NYSE:BDC) headfirst. Highbridge Capital Management also made a $7.5 million investment in the stock during the quarter. The other funds with brand new Belden Inc. (NYSE:BDC) positions are Michael Platt and William Reeves’s BlueCrest Capital Mgmt., George Hall’s Clinton Group, and Cliff Asness’ AQR Capital Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Belden Inc. (NYSE:BDC) but similarly valued. We will take a look at Corporate Office Properties Trust (NYSE:OFC), Glacier Bancorp, Inc. (NASDAQ:GBCI), Nord Anglia Education Inc (NYSE:NORD), and Suburban Propane Partners LP (NYSE:SPH). All of these stocks’ market caps are closest to Belden Inc. (NYSE:BDC)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| OFC | 16 | 99669 | -2 |
| GBCI | 11 | 118275 | -3 |
| NORD | 10 | 125176 | -6 |
| SPH | 6 | 19597 | -1 |
As you can see, these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $91 million. That figure was $107 million in Belden Inc. (NYSE:BDC)’s case. Corporate Office Properties Trust (NYSE:OFC) is the most popular stock in this table. On the other hand, Suburban Propane Partners LP (NYSE:SPH) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Belden Inc. (NYSE:BDC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
