After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of March 31. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Continental Building Products Inc (NYSE:CBPX).
Is Continental Building Products Inc (NYSE:CBPX) a bargain? Investors who are in the know are in a bullish mood. The number of long hedge fund bets inched up by 4 in recent months. Our calculations also showed that cbpx isn’t among the 30 most popular stocks among hedge funds.
According to most investors, hedge funds are viewed as unimportant, outdated investment vehicles of the past. While there are greater than 8000 funds with their doors open at present, We hone in on the elite of this club, about 750 funds. These money managers preside over most of the hedge fund industry’s total capital, and by keeping an eye on their inimitable equity investments, Insider Monkey has uncovered many investment strategies that have historically exceeded Mr. Market. Insider Monkey’s flagship hedge fund strategy outpaced the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
Let’s view the latest hedge fund action regarding Continental Building Products Inc (NYSE:CBPX).
How have hedgies been trading Continental Building Products Inc (NYSE:CBPX)?
Heading into the second quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 25% from one quarter earlier. On the other hand, there were a total of 22 hedge funds with a bullish position in CBPX a year ago. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
Among these funds, D E Shaw held the most valuable stake in Continental Building Products Inc (NYSE:CBPX), which was worth $28.8 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $14 million worth of shares. Moreover, Arrowstreet Capital, Millennium Management, and Two Sigma Advisors were also bullish on Continental Building Products Inc (NYSE:CBPX), allocating a large percentage of their portfolios to this stock.
As industrywide interest jumped, specific money managers were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the largest position in Continental Building Products Inc (NYSE:CBPX). Arrowstreet Capital had $10 million invested in the company at the end of the quarter. Steve Pei’s Gratia Capital also made a $0.7 million investment in the stock during the quarter. The following funds were also among the new CBPX investors: Jeffrey Moskowitz’s Harvey Partners, Jeffrey Talpins’s Element Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks similar to Continental Building Products Inc (NYSE:CBPX). These stocks are Mr. Cooper Group Inc. (NASDAQ:COOP), AK Steel Holding Corporation (NYSE:AKS), Chase Corporation (NYSE:CCF), and Tidewater Inc. (NYSE:TDW). This group of stocks’ market caps are similar to CBPX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COOP | 27 | 310225 | -1 |
| AKS | 13 | 29045 | -2 |
| CCF | 9 | 89059 | 4 |
| TDW | 15 | 215883 | 1 |
| Average | 16 | 161053 | 0.5 |
View table here if you experience formatting issues.
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 $161 million. That figure was $87 million in CBPX’s case. Mr. Cooper Group Inc. (NASDAQ:COOP) is the most popular stock in this table. On the other hand Chase Corporation (NYSE:CCF) is the least popular one with only 9 bullish hedge fund positions. Continental Building Products Inc (NYSE:CBPX) 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. 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. Unfortunately CBPX wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on CBPX were disappointed as the stock returned -7.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
