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Is Carlisle Companies (CSL) a Smart Long-term Buy?

Alex Smith

If you are looking for the best ideas for your portfolio you may want to consider some of Amana Mutual Funds top stock picks. Amana Mutual Funds, an investment management firm, is bullish on Carlisle Companies Inc (NYSE:CSL) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Carlisle Companies Inc (NYSE:CSL) stock. Carlisle Companies Inc (NYSE:CSL) is a manufacturing company based in Arizona. Unfortunately, the stock is down 26.9% since the Amana Mutual Funds pitch in February 2020, which suggests the investment firm was wrong in its decision.

On February 15, 2020, Amana Mutual Funds had released its Q4 2019 Investor Letter. Amana Mutual Funds said that Carlisle Companies Inc (NYSE:CSL) was a top contributor to its performance in 2019. Carlisle Companies Inc (NYSE:CSL) stock positively impacted the Amana Income Fund’s return by 1.58% in 2019.

For the quarter ended December 31st, 2019, Amana Income Fund recorded a return of 9.58%, compared to 9.07% of the S&P 500 Index. This brings its 2019 full-year return to 25.28%, compared to 31.49% of the S&P 500 Index.

Let’s take a look at comments made by Amana Mutual Funds about Carlisle Companies Inc (NYSE:CSL) in the letter.

"Industrials dominated the remainder of the top contributors led by Carlisle, a conglomerate engaged in a number of activities including agriculture, mining, construction, medical technology, transportation, etc. To some extent, Carlisle has its finger in the pies of all of our other industrial holdings."

In Q1 2020, the number of bullish hedge fund positions on Carlisle Companies Inc (NYSE:CSL) stock decreased by about 12% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Carlisle's growth potential. Our calculations showed that Carlisle Companies Inc (NYSE:CSL) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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