We can judge whether Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.
Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) investors should be aware of an increase in enthusiasm from smart money recently. At the end of this article, we will also compare Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) to other stocks, including Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), Trex Company, Inc. (NYSE:TREX), and Amkor Technology, Inc. (NASDAQ:AMKR) to get a better sense of its popularity.
According to most market participants, hedge funds are perceived as worthless, old investment tools of years past. While there are more than 8000 funds trading at present, our experts hone in on the bigwigs of this group, approximately 700 funds. These money managers have their hands on the majority of all hedge funds’ total capital, and by following their inimitable investments, Insider Monkey has deciphered various investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, we’re going to view the fresh action regarding Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE).
What does the smart money think about Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE)?
Heading into Q4, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 29% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Alyeska Investment Group, managed by Anand Parekh, holds the number one position in Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE). Alyeska Investment Group has a $20.1 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by Eduardo Abush of Waterfront Capital Partners, with a $19.9 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Other peers that hold long positions include Robert Polak’s Anchor Bolt Capital, Israel Englander’s Millennium Management, and Michael R. Weisberg’s Crestwood Capital Management.
As aggregate interest increased, key hedge funds have been driving this bullishness. Millennium Management initiated a $10.5 million position during the quarter. The other funds with brand new Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) positions are Peter Muller’s PDT Partners, Renaissance Technologies, and Sander Gerber’s Hudson Bay Capital Management.
Let’s check out hedge fund activity in other stocks similar to Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE). These stocks are Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), Trex Company, Inc. (NYSE:TREX), Amkor Technology, Inc. (NASDAQ:AMKR), and Opus Bank (NASDAQ:OPB). All of these stocks’ market caps resemble Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RRGB | 21 | 110890 | -4 |
| TREX | 16 | 104811 | 4 |
| AMKR | 16 | 56313 | -2 |
| OPB | 13 | 559613 | 2 |
As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $101 million in Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE)’s case. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is the most popular stock in this table. On the other hand, Opus Bank (NASDAQ:OPB) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) 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.
