The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 873 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article we look at what those investors think of Masco Corporation (NYSE:MAS).
Masco Corporation (NYSE:MAS) has seen an increase in enthusiasm from smart money lately. Masco Corporation (NYSE:MAS) was in 35 hedge funds’ portfolios at the end of June. The all time high for this statistic is 51. There were 33 hedge funds in our database with MAS holdings at the end of March. Our calculations also showed that MAS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Matthew Hulsizer of PEAK6 Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, we like undervalued, EBITDA-positive growth stocks, so we are checking out stock pitches like this emerging biotech stock. 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. 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. Keeping this in mind we’re going to go over the latest hedge fund action regarding Masco Corporation (NYSE:MAS).
Do Hedge Funds Think MAS Is A Good Stock To Buy Now?
At Q2’s end, a total of 35 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the first quarter of 2020. Below, you can check out the change in hedge fund sentiment towards MAS over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Ariel Investments was the largest shareholder of Masco Corporation (NYSE:MAS), with a stake worth $101.2 million reported as of the end of June. Trailing Ariel Investments was Renaissance Technologies, which amassed a stake valued at $71.1 million. 40 North Management, AQR Capital Management, and D E Shaw were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position 12th Street Asset Management allocated the biggest weight to Masco Corporation (NYSE:MAS), around 3.33% of its 13F portfolio. 40 North Management is also relatively very bullish on the stock, earmarking 1.51 percent of its 13F equity portfolio to MAS.
Now, specific money managers were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most valuable position in Masco Corporation (NYSE:MAS). Balyasny Asset Management had $12.3 million invested in the company at the end of the quarter. Jinghua Yan’s TwinBeech Capital also made a $4.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Greg Eisner’s Engineers Gate Manager, Matthew Hulsizer’s PEAK6 Capital Management, and Andrew Byington’s Appian Way Asset Management.
Let’s check out hedge fund activity in other stocks similar to Masco Corporation (NYSE:MAS). We will take a look at LKQ Corporation (NASDAQ:LKQ), Cognex Corporation (NASDAQ:CGNX), Howmet Aerospace Inc. (NYSE:HWM), Molina Healthcare, Inc. (NYSE:MOH), Agnico Eagle Mines Limited (NYSE:AEM), GDS Holdings Limited (NASDAQ:GDS), and Godaddy Inc (NYSE:GDDY). All of these stocks’ market caps are similar to MAS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LKQ | 35 | 1708946 | -1 |
| CGNX | 35 | 536677 | 1 |
| HWM | 47 | 3892856 | -4 |
| MOH | 34 | 1618744 | 3 |
| AEM | 29 | 235678 | 1 |
| GDS | 38 | 1648522 | -2 |
| GDDY | 39 | 2769173 | 0 |
| Average | 36.7 | 1772942 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 36.7 hedge funds with bullish positions and the average amount invested in these stocks was $1773 million. That figure was $480 million in MAS’s case. Howmet Aerospace Inc. (NYSE:HWM) is the most popular stock in this table. On the other hand Agnico Eagle Mines Limited (NYSE:AEM) is the least popular one with only 29 bullish hedge fund positions. Masco Corporation (NYSE:MAS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for MAS is 44.3. 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 negative signal and 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 21.8% in 2021 through October 11th and surpassed the market again by 4.4 percentage points. Unfortunately MAS wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); MAS investors were disappointed as the stock returned -3.3% since the end of June (through 10/11) 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 most of these stocks already outperformed the market in 2021.
Follow Masco Corp (NYSE:MAS)
Follow Masco Corp (NYSE:MAS)
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Disclosure: None. This article was originally published at Insider Monkey.
