Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last 12 months ending in October 30. Sixty three percent of these 30 stocks outperformed the market. Although the elite funds occasionally have their duds, such as Micron and Anadarko Petroleum, which fell 50% and 26%, respectively during the same time period, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Mobile Mini Inc (NASDAQ:MINI).
Mobile Mini Inc (NASDAQ:MINI) investors should be aware of an increase in support from the world’s most elite money managers lately. At the end of this article we will also compare Mobile Mini Inc (NASDAQ:MINI) to other stocks including RBC Bearings Incorporated (NASDAQ:ROLL), Capital Bank Financial Corp (NASDAQ:CBF), and Headwaters Inc (NYSE:HW) to get a better sense of its popularity.
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In the financial world there are a lot of metrics stock traders employ to assess publicly traded companies. A pair of the less utilized metrics are hedge fund and insider trading activity. Experts at hedge fund tracking site Insider Monkey have shown that, historically, those who follow the top picks of the elite fund managers can outperform the S&P 500 by a significant margin (see the details here).
Now, we’re going to take a glance at the key action surrounding Mobile Mini Inc (NASDAQ:MINI).
Hedge fund activity in Mobile Mini Inc (NASDAQ:MINI)
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish in this stock, an increase of 22% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund holdings data compiled by Insider Monkey, SG Capital Management, managed by Ken Grossman and Glen Schneider, holds the number one position in Mobile Mini Inc (NASDAQ:MINI). SG Capital Management has a $26.2 million position in the stock, comprising 5.8% of its 13F portfolio. The second largest stake is held by Michael O’Keefe of 12th Street Asset Management, with a $22.4 million position; 8,2% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Chuck Royce’s mutual fund, Royce & Associates, Fisher Asset Management and Matthew Hulsizer’s PEAK6 Capital Management.
As industrywide interest jumped, key hedge funds have jumped into Mobile Mini Inc (NASDAQ:MINI) headfirst. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the most valuable position in Mobile Mini Inc (NASDAQ:MINI). Marshall Wace LLP had $1.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management 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 Ken Griffin’s Citadel Investment Group.
Let’s also take a look at hedge fund activity in other stocks similar to Mobile Mini Inc (NASDAQ:MINI). We will take a look at RBC Bearings Incorporated (NASDAQ:ROLL), Capital Bank Financial Corp (NASDAQ:CBF), Headwaters Inc (NYSE:HW), and ClubCorp Holdings Inc (NYSE:MYCC). This group of stocks’ market caps match Mobile Mini Inc (NASDAQ:MINI)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ROLL | 8 | 79378 | -5 |
| CBF | 5 | 22619 | -3 |
| HW | 24 | 170494 | 1 |
| MYCC | 23 | 240996 | -3 |
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $128 million. Headwaters Inc (NYSE:HW) is the most popular stock in this table. On the other hand, Capital Bank Financial Corp (NASDAQ:CBF) is the least popular one with only 5 bullish hedge fund positions. Mobile Mini Inc (NASDAQ:MINI) 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 Headwaters Inc (NYSE:HW) might be a better candidate to consider a long position.
