You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
In this article, we are going to take a closer look at the hedge fund activity surrounding Post Holdings Inc (NYSE:POST). Overall, the stock has experienced an increase in activity from the world’s largest hedge funds of late. To get a better sense of its popularity we will also compare POST to other stocks including Calpine Corporation (NYSE:CPN), Polaris Industries Inc. (NYSE:PII), and Carlyle Group LP (NASDAQ:CG) at the end of this article.
Follow Post Holdings Inc. (NYSE:POST)
Follow Post Holdings Inc. (NYSE:POST)
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.
Borkin Vadim/Shutterstock.com
Keeping this in mind, let’s view the latest action regarding Post Holdings Inc (NYSE:POST).
What have hedge funds been doing with Post Holdings Inc (NYSE:POST)?
A total of 44 of the investors followed by Insider Monkey held long positions in Post Holdings at the end of the third quarter, up by 10% from the end of June. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Tourbillon Capital Partners, managed by Jason Karp, holds the largest position in Post Holdings Inc (NYSE:POST). Tourbillon Capital Partners has a $247.9 million position in the stock, comprising 5.1% of its 13F portfolio. On Tourbillon Capital Partners’s heels is William Duhamel’s Route One Investment Company, with a $225 million position; the fund has 10.2% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish include Ric Dillon’s Diamond Hill Capital and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into Post Holdings Inc (NYSE:POST) headfirst. Iridian Asset Management, led by David Cohen and Harold Levy, initiated the most outsized position in Post Holdings Inc (NYSE:POST). Iridian Asset Management had $96 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also made a $14.7 million investment in the stock during the quarter. The other funds with brand new POST positions are Solomon Kumin’s Folger Hill Asset Management, Matthew Mark’s Jet Capital Investors, and Anand Parekh’s Alyeska Investment Group.
Let’s go over hedge fund activity in other stocks similar to Post Holdings Inc (NYSE:POST). These stocks are Calpine Corporation (NYSE:CPN), Polaris Industries Inc. (NYSE:PII), Carlyle Group LP (NASDAQ:CG), and Core Laboratories N.V. (NYSE:CLB). This group of stocks’ market values are closest to POST’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CPN | 35 | 836596 | 3 |
| PII | 12 | 75063 | -5 |
| CG | 11 | 90845 | 1 |
| CLB | 22 | 145268 | 1 |
As you can see these stocks had an average of 20 funds with long positions and the average amount invested in these stocks was $287 million. That figure was $1.55 billion in POST’s case. Calpine Corporation (NYSE:CPN) is the most popular stock in this table with 35 funds reporting ownership of the stock. On the other hand, Carlyle Group LP (NASDAQ:CG) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Post Holdings Inc (NYSE:POST) 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.
Disclosure: None
