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 have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Carpenter Technology Corporation (NYSE:CRS) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
Is Carpenter Technology Corporation (NYSE:CRS) a buy, sell, or hold? Prominent investors are in a bullish mood. The number of long hedge fund bets moved up by 1 recently. Our calculations also showed that CRS isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
If you'd ask most stock holders, hedge funds are viewed as unimportant, old financial tools of years past. While there are greater than 8000 funds with their doors open today, Our researchers look at the bigwigs of this club, about 750 funds. These hedge fund managers manage the lion's share of all hedge funds' total asset base, and by tailing their best stock picks, Insider Monkey has uncovered many investment strategies that have historically outstripped the market. Insider Monkey's flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per annum since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world's largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, "I'm investing more today than I did back in early 2009." So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds' buy/sell signals. We're going to take a glance at the recent hedge fund action regarding Carpenter Technology Corporation (NYSE:CRS).
How are hedge funds trading Carpenter Technology Corporation (NYSE:CRS)?
At Q3's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CRS over the last 17 quarters. With the smart money's capital changing hands, there exists an "upper tier" of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Carpenter Technology Corporation (NYSE:CRS). Fisher Asset Management has a $19.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second most bullish fund manager is Huber Capital Management, led by Joe Huber, holding a $13.9 million position; 1.7% of its 13F portfolio is allocated to the stock. Other peers with similar optimism consist of Chuck Royce's Royce & Associates, Cliff Asness's AQR Capital Management and Noam Gottesman's GLG Partners. In terms of the portfolio weights assigned to each position Huber Capital Management allocated the biggest weight to Carpenter Technology Corporation (NYSE:CRS), around 1.72% of its 13F portfolio. Royce & Associates is also relatively very bullish on the stock, designating 0.12 percent of its 13F equity portfolio to CRS.
Now, key hedge funds have jumped into Carpenter Technology Corporation (NYSE:CRS) headfirst. PEAK6 Capital Management, managed by Matthew Hulsizer, created the biggest call position in Carpenter Technology Corporation (NYSE:CRS). PEAK6 Capital Management had $2 million invested in the company at the end of the quarter. Joel Greenblatt's Gotham Asset Management also initiated a $0.7 million position during the quarter. The only other fund with a brand new CRS position is Mike Vranos's Ellington.
Let's go over hedge fund activity in other stocks similar to Carpenter Technology Corporation (NYSE:CRS). These stocks are Vishay Intertechnology (NYSE:VSH), Atlantica Yield plc (NASDAQ:AY), Universal Forest Products, Inc. (NASDAQ:UFPI), and Box, Inc. (NYSE:BOX). This group of stocks' market valuations resemble CRS's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VSH,19,323885,0 AY,19,152882,1 UFPI,20,79055,3 BOX,31,553721,4 Average,22.25,277386,2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $277 million. That figure was $72 million in CRS's case. Box, Inc. (NYSE:BOX) is the most popular stock in this table. On the other hand Vishay Intertechnology (NYSE:VSH) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Carpenter Technology Corporation (NYSE:CRS) is even less popular than VSH. Hedge funds dodged a bullet by taking a bearish stance towards CRS. Our calculations showed that the top 20 most popular hedge fund stocks returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately CRS wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); CRS investors were disappointed as the stock returned 2.2% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 70 percent of these stocks already outperformed the market so far in Q4.
Disclosure: None. This article was originally published at Insider Monkey.