After several tireless days we have finished crunching the numbers from nearly 900 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 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Oshkosh Corporation (NYSE:OSK).
Oshkosh Corporation (NYSE:OSK) was in 31 hedge funds’ portfolios at the end of September. The all time high for this statistic is 40. OSK investors should pay attention to an increase in enthusiasm from smart money recently. There were 28 hedge funds in our database with OSK positions at the end of the second quarter. Our calculations also showed that OSK isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to go over the fresh hedge fund action encompassing Oshkosh Corporation (NYSE:OSK).
Ian Wace of Marshall Wace
Do Hedge Funds Think OSK Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards OSK over the last 25 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
The largest stake in Oshkosh Corporation (NYSE:OSK) was held by AQR Capital Management, which reported holding $74.8 million worth of stock at the end of September. It was followed by Millennium Management with a $29.4 million position. Other investors bullish on the company included Renaissance Technologies, Skylands Capital, and Horizon Asset Management. In terms of the portfolio weights assigned to each position Lodge Hill Capital allocated the biggest weight to Oshkosh Corporation (NYSE:OSK), around 4.2% of its 13F portfolio. Skylands Capital is also relatively very bullish on the stock, designating 2.7 percent of its 13F equity portfolio to OSK.
As aggregate interest increased, specific money managers were breaking ground themselves. Renaissance Technologies, established the largest position in Oshkosh Corporation (NYSE:OSK). Renaissance Technologies had $26.3 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $10.2 million investment in the stock during the quarter. The other funds with brand new OSK positions are Paul Tudor Jones’s Tudor Investment Corp, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Alec Litowitz and Ross Laser’s Magnetar Capital.
Let’s now review hedge fund activity in other stocks similar to Oshkosh Corporation (NYSE:OSK). These stocks are BridgeBio Pharma, Inc. (NASDAQ:BBIO), Post Holdings Inc (NYSE:POST), Macy’s, Inc. (NYSE:M), Casey’s General Stores, Inc. (NASDAQ:CASY), Voya Financial Inc (NYSE:VOYA), Woori Financial Group Inc. (NYSE:WF), and Chart Industries, Inc. (NYSE:GTLS). This group of stocks’ market valuations resemble OSK’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BBIO | 28 | 2118607 | 1 |
| POST | 27 | 1433693 | -4 |
| M | 41 | 1478930 | 6 |
| CASY | 22 | 211044 | -2 |
| VOYA | 35 | 968117 | -9 |
| WF | 2 | 3608 | 0 |
| GTLS | 22 | 350268 | -5 |
| Average | 25.3 | 937752 | -1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.3 hedge funds with bullish positions and the average amount invested in these stocks was $938 million. That figure was $264 million in OSK’s case. Macy’s, Inc. (NYSE:M) is the most popular stock in this table. On the other hand Woori Financial Group Inc. (NYSE:WF) is the least popular one with only 2 bullish hedge fund positions. Oshkosh Corporation (NYSE:OSK) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for OSK is 68.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately OSK wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on OSK were disappointed as the stock returned 5.4% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Oshkosh Corp (NYSE:OSK)
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Disclosure: None. This article was originally published at Insider Monkey.
