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Tiger Cub Impala Asset Management’s Top Stock Picks

Navaneetha Krishnan
·7 mins read

Connecticut-based hedge fund, Impala Asset Management is a multi-billion dollar founded by Robert Bishop in 2004. Presently, Robert Bishop is the Managing Principal of Impala Asset Management. According to fund's website Bishop's responsibilities include managing Waterbuck, Alpha Funds, Impala and other managed accounts and also directing the primary industry analysis wherein funds are invested in capital goods, metals, automotive, and energy. Bishop previously worked at Soros Fund Management, Maverick Capital, Kingdon Capital, and Tiger Management. Bishop has an MBA degree from The Wharton School of the University of Pennsylvania and a BA degree in Political Science from Northwestern University.

Impala Asset Management has offices in New York and Florida, in addition to Connecticut. Among its 13F holdings, Harley-Davidson Inc. (NYSE:HOG) holds the largest position in Impala Asset Management portfolio at 10.48%. Since earlier this year Impala Asset Management has been pushing for changes in Harley-Davidson Inc. (NYSE:HOG) and has also increased its position in it this year. In January 2020, Impala Asset Management had pushed for the exit of Ex-CEO Matt Levatich and few months late, while requesting for operational fixes in to recover their market share in the USA, Europe and Japan regions, they also wanted to replace two new directors on the Harley’s Board.

Jochen Zeitz replaced Matt Levatich and is the current President & CEO of Harley-Davidson Inc. (NYSE:HOG). As soon as he took command in February 2020. He shifted the focus back to big bikes, long established markets such as USA & Europe and also targeting senior and well to do clientele.

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Looking at the previous two quarters this year, Impala Asset Management was a significant seller, During the 2nd quarter, it sold off its positions in Amazon.com, Inc. (NASDAQ:AMZN), FedEx Corporation (NYSE:FDX), Mastercard Inc (NYSE:MA), Microsoft Corporation (NASDAQ:MSFT), and KB Home (NYSE:KBH). The $19.63 Million share KB Home position would have been worth nearly at $41.21 Million today. The largest purchase during the 2nd quarter for Impala Asset Management was Lithia Motors Inc. (NYSE:LAD) The stock price of Lithia Motors Inc has seen a tremendous rise since the Covid-19 pandemic. It was at $81.79 on Mar 31st, 2020 and as of today Aug 24th, 2020 it is at $ 261.52.

The top 5 holdings of Impala Asset Management are Harley-Davidson Inc. (NYSE:HOG), Rio Tinto Plc (NYSE:RIO), Nvr Inc (NYSE:NVR), Louisiana-Pacific Corp (NYSE:LPX), Kansas City Southern (NYSE:KSU). The 13F portfolio is heavily invested in these holdings which account for 41.45% of the 13F holdings

Now let us take a look at each of these holdings in detail.

Harley-Davidson Inc. (NYSE:HOG)

Harley-Davidson Inc. is currently the largest 13F position at 10.48% of the portfolio. Impala Asset Management holds about 3.85 Million shares at a total value of $91.62 Million. Impala has increased its position in Harley-Davidson Inc. (NYSE:HOG), by 46% from the last quarter. The stock currently trades at $27.61. At the beginning of the year, the stock had traded at $37.09 as of Jan 2nd, 2020, and then due to the Covid-19 pandemic it dropped to a low of $15.04 on Apr 3rd, 2020. Since then it has steadily risen to the current price of $27.61. During the 2nd quarter this year Impala Asset Management increased its position in Harley-Davidson Inc. (NYSE:HOG) from 2.65 Million to 3.85 Million shares, thereby making Harley-Davidson Inc. (NYSE:HOG) the largest position in its portfolio. Moving into the 2nd quarter of 2020, Insider Monkey tracked a total of 17 hedge funds holding long positions in this stock. That was a change of -11% from the 4th quarter in 2019. You can check here to track the change in hedge fund sentiments towards Harley-Davidson Inc. (NYSE:HOG over the last 18 quarters.

Rio Tinto Plc (NYSE:RIO)

Rio Tinto is the second largest position at 9.99% of the portfolio. Impala Asset Management holds 1.55 Million shares at a total value of $87.38 Million. Moving into the third quarter of 2020, Insider Monkey tracked a total of 20 hedge funds holding long positions in this stock. That was a change of -5% from the Q4 of 2019. On comparison there were a total of 22 hedge funds bullish about RIO a year ago. Clearly investors should be wary of the decrease hedge fund sentiment. Please click here to review the hedge funds which were among the top holders of the stock and which hedge funds have moved.

Nvr Inc (NYSE:NVR)

Impala Asset Management holds 23,908 shares at a value of $77.91 Million at 8.91% of the portfolio. The stock currently trades at $4,223.76. It was at its lowest this year at $2,175 on Mar 23rd, 2020, but then rallied back and steadily increased to its current position of $4,223.76. Impala Asset Management reduced its position in the stock by 21% from the previous quarter.

Insider Monkey tracked a total of 39 hedge funds holding long positions at the end of the second quarter of 2020. This was a change of 5 from the first quarter of 2020. Clearly the hedge fund sentiments have been on the upswing this year. Please see the detailed chart here to track hedge sentiments over the last 18 quarters.

Louisiana-Pacific Corp (NYSE:LPX)

Impala Asset Management’s stake in Louisiana-Pacific Corp (NYSE:LPX) is at 2.35 Million shares at a value of $60.46 Million. This comprises 6.91% of the portfolio. At the end of Mar, the stock price was trading at a low of $17.18, but since then it has steadily risen and is now currently trading at $33.52. Impala Asset Management has reduced its position in Louisiana-Pacific Corp (NYSE:LPX) by 21% from the last quarter. Shareholders have witnessed a decrease in hedge fund sentiment towards Louisiana-Pacific Corp (NYSE:LPX). At the end of 2nd quarter 2020, Insider Monkey tracked a total of 26 hedge funds holding positions in this stock. The previous quarter there were 29 hedge fund holding positions. A change of 10% from the previous quarter. Among the funds tracked by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management holds the largest position in Louisiana-Pacific Corp (NYSE:LPX), worth almost $85.19 Million. Impala Asset Management comes in at second, holding a $79.02 Million. Please click here to track the hedge sentiments over the last 18 quarters.

Kansas City Southern (NYSE:KSU)

With 302,492 shares at a value of $45.19 Million, Impala Asset Management’s stake in Kansas City Southern (NYSE:KSU) is at 5.16%. At the end of the 2nd Quarter 2020, Impala has reduced its position in the stock by 40%. The stock is currently trading at $182.78. At the end of the 2nd Quarter, there were a total of 47 hedge funds holding positions in this stock, compared to the 45 hedge funds reported in the 1st Quarter of 2020. Please click here to review the hedge fund sentiment in Kansas City Southern (NYSE:KSU) over the last 18 Quarters.

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