We have been waiting for this for a year and finally the third quarter ended up showing a nice bump in the performance of small-cap stocks. Both the S&P 500 and Russell 2000 were up since the end of the second quarter, but small-cap stocks outperformed the large-cap stocks by double digits. This is important for hedge funds, which are big supporters of small-cap stocks, because their investors started pulling some of their capital out due to poor recent performance. It is very likely that equity hedge funds will deliver better risk adjusted returns in the second half of this year. In this article we are going to look at how this recent market trend affected the sentiment of hedge funds towards Commercial Vehicle Group, Inc. (NASDAQ:CVGI), and what that likely means for the prospects of the company and its stock.
Is Commercial Vehicle Group, Inc. (NASDAQ:CVGI) a bargain? Prominent investors are altogether in a bearish mood. The number of long hedge fund bets fell by 3 recently. There were 12 hedge funds in our database with CVGI holdings at the end of September. 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 Allied Motion Technologies, Inc. (NASDAQ:AMOT), Applied Genetic Technologies Corp (NASDAQ:AGTC), and ARC Document Solutions Inc (NYSE:ARC) to gather more data points.
Follow Commercial Vehicle Group Inc. (NASDAQ:CVGI)
Follow Commercial Vehicle Group Inc. (NASDAQ:CVGI)
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Hedge fund activity in Commercial Vehicle Group, Inc. (NASDAQ:CVGI)
At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, down by 20% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in CVGI over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Royce & Associates, led by Chuck Royce, holds the most valuable position in Commercial Vehicle Group, Inc. (NASDAQ:CVGI). Royce & Associates has a $5.6 million position in the stock. Sitting at the No. 2 spot is Renaissance Technologies, one of the largest hedge funds in the world, with a $5.2 million position. Some other members of the smart money that hold long positions include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors. 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.
Seeing as Commercial Vehicle Group, Inc. (NASDAQ:CVGI) has gone through declining sentiment from the entirety of the hedge funds we track, we can see that there is a sect of funds who were dropping their full holdings last quarter. At the top of the heap, Peter Schliemann’s Rutabaga Capital Management cut the biggest position of all the investors watched by Insider Monkey, worth close to $7.7 million in stock. Douglas Dethy’s fund, DC Capital Partners, also dropped its stock, about $0.5 million worth.
Let’s check out hedge fund activity in other stocks similar to Commercial Vehicle Group, Inc. (NASDAQ:CVGI). We will take a look at Allied Motion Technologies, Inc. (NASDAQ:AMOT), Applied Genetic Technologies Corp (NASDAQ:AGTC), ARC Document Solutions Inc (NYSE:ARC), and Travelzoo Inc. (NASDAQ:TZOO). This group of stocks’ market caps resemble CVGI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AMOT | 6 | 3527 | 2 |
| AGTC | 12 | 14930 | 0 |
| ARC | 10 | 30585 | -1 |
| TZOO | 9 | 18512 | 3 |
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $18 million in CVGI’s case. Applied Genetic Technologies Corp (NASDAQ:AGTC) is the most popular stock in this table. On the other hand Allied Motion Technologies, Inc. (NASDAQ:AMOT) is the least popular one with only 6 bullish hedge fund positions. Commercial Vehicle Group, Inc. (NASDAQ:CVGI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AGTC might be a better candidate to consider taking a long position in.
Disclosure: None
