Is Janus Capital Group Inc (NYSE:JNS) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2-and-20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs on their staffs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Janus Capital Group Inc (NYSE:JNS) was in 20 hedge funds’ portfolios at the end of September. JNS has seen a slight decrease in activity from the world’s largest hedge funds in recent months. There were 21 hedge funds in our database with JNS positions at the end of the previous quarter. At the end of this article we will also compare JNS to other stocks including REGAL-BELOIT CORPORATION (NYSE:RBC), The Medicines Company (NASDAQ:MDCO), and NorthWestern Corp (NYSE:NWE) to get a better sense of its popularity.
Follow Janus Capital Group Inc (NYSE:JNS)
Follow Janus Capital Group Inc (NYSE:JNS)
Today there are plenty of metrics stock traders use to value their holdings. A couple of the most innovative metrics are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the best fund managers can outclass the broader indices by a superb amount (see the details here).
Keeping this in mind, let’s go over the key action surrounding Janus Capital Group Inc (NYSE:JNS).
How have hedgies been trading Janus Capital Group Inc (NYSE:JNS)?
At Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change 5% slip from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings substantially (or had already accumulated large positions).
According to Insider Monkey’s hedge fund database, Mario Gabelli’s GAMCO Investors has the biggest position in Janus Capital Group Inc (NYSE:JNS), worth close to $84.6 million, comprising 0.6% of its total 13F portfolio. The second-most bullish fund manager is Fisher Asset Management, managed by Ken Fisher, which holds a $55.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish consist of D E Shaw, Israel Englander’s Millennium Management, and Cliff Asness’ AQR Capital Management.
Seeing as Janus Capital Group Inc (NYSE:JNS) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers who were dropping their entire stakes heading into Q4. It’s worth mentioning that Richard Schimel’s Sterling Ridge Capital Management dumped the largest stake of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $3.8 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also sold off its stock, about $1.5 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 1 fund heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Janus Capital Group Inc (NYSE:JNS) but similarly valued. These stocks are REGAL-BELOIT CORPORATION (NYSE:RBC), The Medicines Company (NASDAQ:MDCO), NorthWestern Corp (NYSE:NWE), and Prospect Capital Corporation (NASDAQ:PSEC). This group of stocks’ market values are similar to JNS’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RBC | 20 | 222895 | -2 |
| MDCO | 19 | 809032 | -1 |
| NWE | 12 | 62313 | 3 |
| PSEC | 12 | 28133 | 0 |
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $281 million. That figure was $342 million in JNS’s case. REGAL-BELOIT CORPORATION (NYSE:RBC) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only 12 bullish hedge fund positions. Janus Capital Group Inc (NYSE:JNS) is tied for the most popular stock in this group and has an above-average amount of money invested in it. This is a positive signal and makes the stock worth considering a long position in.
