A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Spirit AeroSystems Holdings, Inc. (NYSE:SPR).
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was in 50 hedge funds’ portfolios at the end of September. SPR investors should pay attention to an increase in support from the world’s most elite money managers in recent months. There were 45 hedge funds in our database with SPR holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Envision Healthcare Holdings Inc (NYSE:EVHC), Harman International Industries Inc./DE/ (NYSE:HAR), and IDEXX Laboratories, Inc. (NASDAQ:IDXX) to gather more data points.
Follow Spirit Aerosystems Holdings Inc. (NYSE:SPR)
Follow Spirit Aerosystems Holdings Inc. (NYSE:SPR)
To the average investor there are tons of formulas shareholders employ to analyze stocks. A duo of the less utilized formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top fund managers can outperform the broader indices by a significant margin (see the details here).
With all of this in mind, let’s take a glance at the key action encompassing Spirit AeroSystems Holdings, Inc. (NYSE:SPR).
What have hedge funds been doing with Spirit AeroSystems Holdings, Inc. (NYSE:SPR)?
Heading into Q4, a total of 50 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Matt Sirovich and Jeremy Mindich’s Scopia Capital has the biggest position in Spirit AeroSystems Holdings, Inc. (NYSE:SPR), worth close to $720.6 million, corresponding to 15.5% of its total 13F portfolio. On Scopia Capital’s heels is Hound Partners, managed by Jonathan Auerbach, which holds a $556.3 million position; the fund has 12% of its 13F portfolio invested in the stock. Other peers that are bullish contain D E Shaw, Anand Desai’s Darsana Capital Partners and Cliff Asness’ AQR Capital Management.
Consequently, specific money managers have been driving this bullishness. Darsana Capital Partners, managed by Anand Desai, initiated the most valuable call position in Spirit AeroSystems Holdings, Inc. (NYSE:SPR). Darsana Capital Partners had $36.3 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $12 million investment in the stock during the quarter. The other funds with brand new SPR positions are Siddharth Thacker’s Signpost Capital, Jacob Gottlieb’s Visium Asset Management, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Spirit AeroSystems Holdings, Inc. (NYSE:SPR) but similarly valued. We will take a look at Envision Healthcare Holdings Inc (NYSE:EVHC), Harman International Industries Inc./DE/ (NYSE:HAR), IDEXX Laboratories, Inc. (NASDAQ:IDXX), and KT Corporation (ADR) (NYSE:KT). This group of stocks’ market caps are closest to SPR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EVHC | 32 | 1194040 | 3 |
| HAR | 27 | 404238 | 10 |
| IDXX | 26 | 696863 | -2 |
| KT | 9 | 19074 | -3 |
As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $579 million. That figure was $2,778 million in SPR’s case. Envision Healthcare Holdings Inc (NYSE:EVHC) is the most popular stock in this table. On the other hand KT Corporation (ADR) (NYSE:KT) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Spirit AeroSystems Holdings, Inc. (NYSE:SPR) 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.
