The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Corning Incorporated (NYSE:GLW) from the perspective of those elite funds.
At the end of September, Corning Incorporated (NYSE:GLW) was included in the 13F portfolios of 36 investors tracked by Insider Monkey. Potential GLW investors should be aware of an increase in support from the world’s most elite money managers, as there had been 32 funds bullish on the stock at the end of the second quarter. At the end of this article we will also compare GLW to other stocks including Mylan Inc. (NASDAQ:MYL), Aviva Plc (ADR) (NYSE:AV), and HP Inc. (NYSE:HPQ) to get a better sense of its popularity.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, let’s take a peek at the latest action regarding Corning Incorporated (NYSE:GLW).
How are hedge funds trading Corning Incorporated (NYSE:GLW)?
A total of 36 funds tracked by Insider Monkey held long positions in Corning Incorporated, a change of 13% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Levin Capital Strategies, managed by John A. Levin, holds the biggest position in Corning Incorporated (NYSE:GLW). Levin Capital Strategies has a $170.2 million position in the stock, comprising 2.5% of its 13F portfolio. On Levin Capital Strategies’s heels is Yacktman Asset Management, managed by Donald Yacktman, which holds a $73.9 million position; 0.6% of its 13F portfolio is allocated to the company. Other professional money managers with similar optimism contain Cliff Asness’ AQR Capital Management, Daniel Bubis’ Tetrem Capital Management, and David Harding’s Winton Capital Management.
As one would reasonably expect, specific money managers have jumped into Corning Incorporated (NYSE:GLW) headfirst. Citadel Investment Group, managed by Ken Griffin, created the most outsized call position in Corning Incorporated (NYSE:GLW). Citadel Investment Group had $19.3 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also made a $14.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Messner’s Seminole Capital (Investment Mgmt), John Overdeck and David Siegel’s Two Sigma Advisors, and Paul Tudor Jones’ Tudor Investment Corp.
Let’s check out hedge fund activity in other stocks similar to Corning Incorporated (NYSE:GLW). We will take a look at Mylan Inc. (NASDAQ:MYL), Aviva Plc (ADR) (NYSE:AV), HP Inc. (NYSE:HPQ), and Paychex, Inc. (NASDAQ:PAYX). This group of stocks’ market caps are similar to GLW’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MYL | 39 | 1819090 | -5 |
| AV | 5 | 2883 | 1 |
| HPQ | 39 | 1293117 | -1 |
| PAYX | 24 | 612841 | 1 |
As you can see these stocks had an average of 27 funds with bullish positions and the average amount invested in these stocks was $932 million. That figure was $662 million in GLW’s case. Mylan Inc. (NASDAQ:MYL) is the most popular stock in this table, while Aviva Plc (ADR) (NYSE:AV) is the least popular one with only five investors holding shares. Corning Incorporated (NYSE:GLW) 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 Mylan Inc. (NASDAQ:MYL) might be a better candidate to consider a long position.
