After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Louisiana-Pacific Corporation (NYSE:LPX).
Louisiana-Pacific Corporation (NYSE:LPX) was in 31 hedge funds' portfolios at the end of September. LPX has experienced an increase in enthusiasm from smart money of late. There were 27 hedge funds in our database with LPX holdings at the end of the previous quarter. Our calculations also showed that LPX 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.
According to most shareholders, hedge funds are perceived as unimportant, old financial tools of yesteryear. While there are over 8000 funds trading at present, Our researchers choose to focus on the upper echelon of this club, about 750 funds. These money managers shepherd bulk of the smart money's total asset base, and by keeping track of their best investments, Insider Monkey has revealed a few investment strategies that have historically surpassed Mr. Market. Insider Monkey's flagship short hedge fund strategy outstripped 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 .
[caption id="attachment_189677" align="aligncenter" width="450"] Jeffrey Altman of Owl Creek Asset Management[/caption]
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. We're going to view the fresh hedge fund action surrounding Louisiana-Pacific Corporation (NYSE:LPX).
What have hedge funds been doing with Louisiana-Pacific Corporation (NYSE:LPX)?
At the end of the third quarter, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards LPX over the last 17 quarters. With hedgies' capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to Insider Monkey's hedge fund database, Millennium Management, managed by Israel Englander, holds the biggest position in Louisiana-Pacific Corporation (NYSE:LPX). Millennium Management has a $106.2 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Impala Asset Management, led by Robert Bishop, holding a $84.3 million position; the fund has 6.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish include Renaissance Technologies, Phill Gross and Robert Atchinson's Adage Capital Management and Jeffrey Altman's Owl Creek Asset Management. In terms of the portfolio weights assigned to each position Impala Asset Management allocated the biggest weight to Louisiana-Pacific Corporation (NYSE:LPX), around 6.09% of its portfolio. Owl Creek Asset Management is also relatively very bullish on the stock, earmarking 2.65 percent of its 13F equity portfolio to LPX.
As one would reasonably expect, key money managers have been driving this bullishness. Impala Asset Management, managed by Robert Bishop, established the most outsized position in Louisiana-Pacific Corporation (NYSE:LPX). Impala Asset Management had $84.3 million invested in the company at the end of the quarter. Mike Masters's Masters Capital Management also initiated a $12.3 million position during the quarter. The other funds with new positions in the stock are Louis Bacon's Moore Global Investments, Alexander Mitchell's Scopus Asset Management, and Anand Parekh's Alyeska Investment Group.
Let's now review hedge fund activity in other stocks similar to Louisiana-Pacific Corporation (NYSE:LPX). We will take a look at CVB Financial Corp. (NASDAQ:CVBF), Gates Industrial Corporation plc (NYSE:GTES), SkyWest, Inc. (NASDAQ:SKYW), and WNS (Holdings) Limited (NYSE:WNS). This group of stocks' market caps are closest to LPX's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CVBF,12,43719,0 GTES,14,50130,1 SKYW,15,177096,2 WNS,18,214456,2 Average,14.75,121350,1.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $121 million. That figure was $532 million in LPX's case. WNS (Holdings) Limited (NYSE:WNS) is the most popular stock in this table. On the other hand CVB Financial Corp. (NASDAQ:CVBF) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Louisiana-Pacific Corporation (NYSE:LPX) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Hedge funds were also right about betting on LPX as the stock returned 21.2% during the first two months of Q4 and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.