After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards United States Steel Corporation (NYSE:X).
United States Steel Corporation (NYSE:X) shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. At the end of this article, we will also compare United States Steel Corporation (NYSE:X) to other stocks, including Nationstar Mortgage Holdings Inc (NYSE:NSM), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), and Paylocity Holding Corp (NASDAQ:PCTY) to get a better sense of its popularity.
Follow United States Steel Corp (NYSE:X)
Follow United States Steel Corp (NYSE:X)
In the eyes of most stock holders, hedge funds are viewed as worthless, old investment vehicles of the past. While there are more than 8000 funds with their doors open at the moment, We hone in on the elite of this club, approximately 700 funds. These money managers command most of the smart money’s total capital, and by monitoring their top stock picks, Insider Monkey has brought to light numerous investment strategies that have historically outperformed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Keeping this in mind, we’re going to take a peek at the fresh action encompassing United States Steel Corporation (NYSE:X).
What does the smart money think about United States Steel Corporation (NYSE:X)?
Heading into Q4, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decrease of 14% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Griffin’s Citadel Investment Group has the largest position in United States Steel Corporation (NYSE:X), worth close to $13.2 million, comprising less than 0.1% of its total 13F portfolio. The second most bullish fund manager is Blue Mountain Capital, led by Andrew Feldstein and Stephen Siderow, holding a $11.5 million position; 0.2% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism consist of Shashin Shah’s Think Investments, Ray Dalio’s Bridgewater Associates, and Michael Price’s MFP Investors.
Seeing as United States Steel Corporation (NYSE:X) has witnessed a declination in interest from the entirety of the hedge funds and institutional investors we track, logic holds that there exists a select few fund managers who were dropping their full holdings last quarter. At the top of the heap, David Harding’s Winton Capital Management said goodbye to the largest stake of the “upper crust” of funds watched by Insider Monkey, comprising close to $13.7 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dumped about $10.3 million worth of shares. These transactions are interesting, as aggregate hedge fund interest dropped by 4 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as United States Steel Corporation (NYSE:X) but similarly valued. These stocks are Nationstar Mortgage Holdings Inc (NYSE:NSM), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), Paylocity Holding Corp (NASDAQ:PCTY), and Ship Finance International Limited (NYSE:SFL). This group of stocks’ market valuations match X’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NSM | 22 | 1282540 | 0 |
| AXL | 19 | 297821 | -3 |
| PCTY | 19 | 88893 | 8 |
| SFL | 16 | 28713 | -3 |
As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $424 million. That figure was $97 million in United States Steel Corporation (NYSE:X)‘s case. Nationstar Mortgage Holdings Inc (NYSE:NSM) is the most popular stock in this table. On the other hand, Ship Finance International Limited (NYSE:SFL) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks, United States Steel Corporation (NYSE:X) 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.
