Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Cummins Inc. (NYSE:CMI)?
Cummins Inc. (NYSE:CMI) investors should be aware of an increase in activity from the world’s largest hedge funds in recent months. CMI was in 29 hedge funds’ portfolios at the end of September. There were 28 hedge funds in our database with CMI positions at the end of the previous quarter. At the end of this article we will also compare CMI to other stocks including TELUS Corporation (USA) (NYSE:TU), Hess Corp. (NYSE:HES), and EnergySolutions, Inc. (NYSE:ES) to get a better sense of its popularity.
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What does the smart money think about Cummins Inc. (NYSE:CMI)?
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a rise of 4% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Cliff Asness’ AQR Capital Management has the most valuable position in Cummins Inc. (NYSE:CMI), worth close to $216.6 million. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $62.6 million position. Some other peers that are bullish consist of Joel Greenblatt’s Gotham Asset Management and Clint Murray’s Lodge Hill Capital.
As industrywide interest jumped, some big names have been driving this bullishness. Lodge Hill Capital initiated the largest call position in Cummins Inc. (NYSE:CMI). Lodge Hill Capital had $44.9 million invested in the company at the end of the quarter and also created a $32 million long position in the stock during the quarter. The other funds with brand new CMI positions are Matthew Tewksbury’s Stevens Capital Management, and Louis Navellier’s Navellier & Associates.
Let’s check out hedge fund activity in other stocks similar to Cummins Inc. (NYSE:CMI). We will take a look at TELUS Corporation (USA) (NYSE:TU), Hess Corp. (NYSE:HES), EnergySolutions, Inc. (NYSE:ES), and Devon Energy Corp (NYSE:DVN). All of these stocks’ market caps match CMI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TU | 9 | 224564 | -3 |
| HES | 37 | 1580730 | 0 |
| ES | 20 | 329160 | 4 |
| DVN | 50 | 1340988 | -11 |
As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $869 million. That figure was $510 million in CMI’s case. Devon Energy Corp (NYSE:DVN) is the most popular stock in this table. On the other hand TELUS Corporation (USA) (NYSE:TU) is the least popular one with only 9 bullish hedge fund positions. Cummins Inc. (NYSE:CMI) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DVN might be a better candidate to consider a long position.
Disclosure: None
