The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 867 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Cornerstone Building Brands, Inc. (NYSE:CNR) based on those filings.
Is CNR a good stock to buy now? Cornerstone Building Brands, Inc. (NYSE:CNR) investors should be aware of an increase in support from the world’s most elite money managers recently. Cornerstone Building Brands, Inc. (NYSE:CNR) was in 22 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 28. There were 20 hedge funds in our database with CNR positions at the end of the second quarter. Our calculations also showed that CNR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s take a look at the new hedge fund action surrounding Cornerstone Building Brands, Inc. (NYSE:CNR).
Paul Tudor Jones of Tudor Investment Corp
Do Hedge Funds Think CNR Is A Good Stock To Buy Now?
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards CNR over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Guardian Point Capital was the largest shareholder of Cornerstone Building Brands, Inc. (NYSE:CNR), with a stake worth $29.2 million reported as of the end of September. Trailing Guardian Point Capital was King Street Capital, which amassed a stake valued at $20.5 million. Voss Capital, Coliseum Capital, and Renaissance Technologies were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Guardian Point Capital allocated the biggest weight to Cornerstone Building Brands, Inc. (NYSE:CNR), around 6.77% of its 13F portfolio. Covalent Capital Partners is also relatively very bullish on the stock, designating 4.49 percent of its 13F equity portfolio to CNR.
As industrywide interest jumped, some big names were leading the bulls’ herd. Tudor Investment Corp, managed by Paul Tudor Jones, initiated the biggest position in Cornerstone Building Brands, Inc. (NYSE:CNR). Tudor Investment Corp had $0.5 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also made a $0.4 million investment in the stock during the quarter. The only other fund with a new position in the stock is Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cornerstone Building Brands, Inc. (NYSE:CNR) but similarly valued. We will take a look at Tellurian Inc. (NYSE:TELL), Afya Limited (NASDAQ:AFYA), Eagle Bancorp, Inc. (NASDAQ:EGBN), QAD Inc. (NASDAQ:QADA), Monmouth Real Estate Investment Corp. (NYSE:MNR), Jumia Technologies AG (NYSE:JMIA), and YPF Sociedad Anonima (NYSE:YPF). This group of stocks’ market caps match CNR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TELL | 15 | 93120 | -2 |
| AFYA | 5 | 42948 | -1 |
| EGBN | 15 | 18025 | 0 |
| QADA | 25 | 335824 | 2 |
| MNR | 25 | 214337 | 7 |
| JMIA | 14 | 58492 | 0 |
| YPF | 7 | 23880 | -4 |
| Average | 15.1 | 112375 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $105 million in CNR’s case. QAD Inc. (NASDAQ:QADA) is the most popular stock in this table. On the other hand Afya Limited (NASDAQ:AFYA) is the least popular one with only 5 bullish hedge fund positions. Cornerstone Building Brands, Inc. (NYSE:CNR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CNR is 73.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on CNR as the stock returned 19.4% since the end of Q3 (through 12/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
