Where Do Hedge Funds Stand On CompX International Inc. (CIX)?

The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, 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 CompX International Inc. (NYSE:CIX).

Hedge fund interest in CompX International Inc. (NYSE:CIX) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that CIX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). At the end of this article we will also compare CIX to other stocks including LCNB Corp. (NASDAQ:LCNB), Maui Land & Pineapple Company, Inc. (NYSE:MLP), and Alico, Inc. (NASDAQ:ALCO) to get a better sense of its popularity.

In today’s marketplace there are a multitude of metrics market participants have at their disposal to evaluate stocks. A pair of the less known metrics are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the market by a significant margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Chuck Royce of Royce & Associates

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s take a gander at the key hedge fund action surrounding CompX International Inc. (NYSE:CIX).

Do Hedge Funds Think CIX Is A Good Stock To Buy Now?

At first quarter’s end, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards CIX over the last 23 quarters. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Chuck Royce’s Royce & Associates has the largest position in CompX International Inc. (NYSE:CIX), worth close to $3.8 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Newtyn Management, managed by Noah Levy and Eugene Dozortsev, which holds a $3.8 million position; the fund has 1% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that hold long positions comprise Renaissance Technologies, David P. Cohen’s Minerva Advisors and . In terms of the portfolio weights assigned to each position Newtyn Management allocated the biggest weight to CompX International Inc. (NYSE:CIX), around 1.03% of its 13F portfolio. Minerva Advisors is also relatively very bullish on the stock, designating 0.38 percent of its 13F equity portfolio to CIX.

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Sessa Capital. 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 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Newtyn Management).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CompX International Inc. (NYSE:CIX) but similarly valued. These stocks are LCNB Corp. (NASDAQ:LCNB), Maui Land & Pineapple Company, Inc. (NYSE:MLP), Alico, Inc. (NASDAQ:ALCO), Applied Optoelectronics Inc (NASDAQ:AAOI), Lakeland Industries, Inc. (NASDAQ:LAKE), CTI Biopharma Corp. (NASDAQ:CTIC), and StoneMor Inc. (NYSE:STON). All of these stocks’ market caps are closest to CIX’s market cap.

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As you can see these stocks had an average of 6.4 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $12 million in CIX’s case. CTI Biopharma Corp. (NASDAQ:CTIC) is the most popular stock in this table. On the other hand LCNB Corp. (NASDAQ:LCNB) is the least popular one with only 1 bullish hedge fund positions. CompX International Inc. (NYSE:CIX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CIX is 46.5. 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. 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 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. A small number of hedge funds were also right about betting on CIX as the stock returned 23.5% since the end of the first quarter (through 6/11) and outperformed the market by an even larger margin.

Disclosure: None. This article was originally published at Insider Monkey.