The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Northwest Natural Gas Co (NYSE:NWN).
Northwest Natural Gas Co (NYSE:NWN) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare NWN to other stocks including Stillwater Mining Company (NYSE:SWC), AZZ Incorporated (NYSE:AZZ), and Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) to get a better sense of its popularity.
Follow Northwest Natural Gas Co (Old Filings) (NYSE:NWN)
Follow Northwest Natural Gas Co (Old Filings) (NYSE:NWN)
If you’d ask most shareholders, hedge funds are perceived as unimportant, outdated financial tools of yesteryear. While there are over 8000 funds in operation at the moment, Our researchers look at the masters of this club, approximately 700 funds. It is estimated that this group of investors handle most of all hedge funds’ total asset base, and by keeping an eye on their first-class equity investments, Insider Monkey has revealed a number of investment strategies that have historically outstripped the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, we’re going to take a gander at the new action surrounding Northwest Natural Gas Co (NYSE:NWN).
How have hedgies been trading Northwest Natural Gas Co (NYSE:NWN)?
When looking at the institutional investors followed by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the number one position in Northwest Natural Gas Co (NYSE:NWN). Fisher Asset Management has a $10.6 million position in the stock, comprising less than 0.1% of its 13F portfolio. On Fisher Asset Management’s heels is Ken Griffin of Citadel Investment Group, with a $2.8 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining peers that hold long positions encompass Jim Simons’s Renaissance Technologies, Mario Gabelli’s GAMCO Investors and Cliff Asness’s AQR Capital Management.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Tudor Investment Corp. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was D E Shaw).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Northwest Natural Gas Co (NYSE:NWN) but similarly valued. We will take a look at Stillwater Mining Company (NYSE:SWC), AZZ Incorporated (NYSE:AZZ), Zeltiq Aesthetics Inc (NASDAQ:ZLTQ), and Cambrex Corporation (NYSE:CBM). This group of stocks’ market values are closest to NWN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SWC | 10 | 196295 | -8 |
| AZZ | 7 | 34068 | -4 |
| ZLTQ | 25 | 338023 | -1 |
| CBM | 25 | 87530 | 4 |
As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $164 million. That figure was $22 million in NWN’s case. Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) is the most popular stock in this table. On the other hand AZZ Incorporated (NYSE:AZZ) is the least popular one with only 7 bullish hedge fund positions. Northwest Natural Gas Co (NYSE:NWN) 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 ZLTQ might be a better candidate to consider a long position.
