Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track more than 700 prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile gigantic failures like hedge funds’ recent losses in Valeant. Let’s take a closer look at what the funds we track think about Quanex Building Products Corporation (NYSE:NX) in this article.
Quanex Building Products Corporation (NYSE:NX) was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. NX investors should pay attention to an increase in support from the world’s most elite money managers of late. There were 18 hedge funds in our database with NX positions at the end of the previous quarter. At the end of this article we will also compare NX to other stocks including Tile Shop Hldgs, Inc. (NASDAQ:TTS), Walter Investment Management Corp (NYSE:WAC), and Barnes & Noble Education Inc (NYSE:BNED) to get a better sense of its popularity.
Follow Quanex Building Products Corp (NYSE:NX)
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Now, let’s go over the fresh action surrounding Quanex Building Products Corporation (NYSE:NX).
How have hedgies been trading Quanex Building Products Corporation (NYSE:NX)?
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 17% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Crispin Odey’s Odey Asset Management Group has the number one position in Quanex Building Products Corporation (NYSE:NX), worth close to $37.4 million, comprising 3% of its total 13F portfolio. The second most bullish fund manager is Royce & Associates, led by Chuck Royce, holding a $18.9 million position; 0.1% of its 13F portfolio is allocated to the stock. Other professional money managers that are bullish encompass Jim Simons’ Renaissance Technologies, Ken Grossman and Glen Schneider’s SG Capital Management and D. E. Shaw’s D E Shaw.
As aggregate interest increased, some big names were leading the bulls’ herd. Fisher Asset Management, managed by Ken Fisher, created the most outsized position in Quanex Building Products Corporation (NYSE:NX). Fisher Asset Management had $2.7 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1.4 million position during the quarter. The other funds with new positions in the stock are Robert I. Usdan and Wayne K. Goldstein’s Endicott Management, Lee Munder’s Lee Munder Capital Group, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Quanex Building Products Corporation (NYSE:NX) but similarly valued. We will take a look at Tile Shop Hldgs, Inc. (NASDAQ:TTS), Walter Investment Management Corp (NYSE:WAC), Barnes & Noble Education Inc (NYSE:BNED), and eLong, Inc. (ADR) (NASDAQ:LONG). All of these stocks’ market caps are similar to NX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TTS | 20 | 109809 | 10 |
| WAC | 5 | 353896 | -1 |
| BNED | 19 | 157971 | 19 |
| LONG | 4 | 47125 | 0 |
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $167 million. That figure was $96 million in NX’s case. Tile Shop Hldgs, Inc. (NASDAQ:TTS) is the most popular stock in this table. On the other hand eLong, Inc. (ADR) (NASDAQ:LONG) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Quanex Building Products Corporation (NYSE:NX) 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.
