At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Manitowoc Company, Inc. (NYSE:MTW) was in 21 hedge funds’ portfolios at the end of September. MTW has experienced a decrease in support from the world’s most elite money managers lately. There were 25 hedge funds in our database with MTW holdings at the end of the previous quarter. At the end of this article we will also compare MTW to other stocks including Paycom Software Inc (NYSE:PAYC), Electronics For Imaging, Inc. (NASDAQ:EFII), and Insys Therapeutics Inc (NASDAQ:INSY) to get a better sense of its popularity.
Follow Manitowoc Co Inc (NYSE:MTW)
Follow Manitowoc Co Inc (NYSE:MTW)
In the 21st century investor’s toolkit, there are many indicators stock market investors put to use to grade their holdings. A pair of the best indicators is composed of hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the elite fund managers can outclass their index-focused peers by a superb margin (see the details here).
With all of this in mind, we’re going to take a look at the new action encompassing Manitowoc Company, Inc. (NYSE:MTW).
What does the smart money think about Manitowoc Company, Inc. (NYSE:MTW)?
Heading into Q4, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -16% from one quarter earlier. With hedge funds’ capital changing hands, there exist a few key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Icahn Capital LP, managed by Carl Icahn, holds the biggest position in Manitowoc Company, Inc. (NYSE:MTW). Icahn Capital LP has an $158.7 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Alan Fournier of Pennant Capital Management, with an $149.5 million position; 3.2% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism comprise Larry Robbins’s Glenview Capital, Christian Leone’s Luxor Capital Group and Michael Lowenstein’s Kensico Capital.
Since Manitowoc Company, Inc. (NYSE:MTW) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there were a few fund managers that slashed their full holdings last quarter. It’s worth mentioning that Willem Mesdag’s Red Mountain Capital cut the largest stake of the “upper crust” of funds watched by Insider Monkey, totaling about $63.9 million in stock. Phill Gross and Robert Atchinson’s fund, Adage Capital Management, also sold off its stock, about $38 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds last quarter.
Let’s go over hedge fund activity in other stocks similar to Manitowoc Company, Inc. (NYSE:MTW). We will take a look at Paycom Software Inc (NYSE:PAYC), Electronics For Imaging, Inc. (NASDAQ:EFII), Insys Therapeutics Inc (NASDAQ:INSY), and First Financial Bankshares Inc (NASDAQ:FFIN). This group of stocks’ market caps are similar to MTW’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PAYC | 19 | 82516 | 1 |
| EFII | 13 | 267351 | 2 |
| INSY | 15 | 312971 | -5 |
| FFIN | 5 | 9428 | -3 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $168 million. That figure was $938 million in MTW’s case. Paycom Software Inc (NYSE:PAYC) is the most popular stock in this table. On the other hand, First Financial Bankshares Inc (NASDAQ:FFIN) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Manitowoc Company, Inc. (NYSE:MTW) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
