The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on September 30th, about a month before the elections. We at Insider Monkey have made an extensive database of more than 817 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Hyster-Yale Materials Handling Inc (NYSE:HY) based on those filings.
Hyster-Yale Materials Handling Inc (NYSE:HY) has experienced an increase in support from the world's most elite money managers lately. Hyster-Yale Materials Handling Inc (NYSE:HY) was in 12 hedge funds' portfolios at the end of September. The all time high for this statistics is 15. Our calculations also showed that HY isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are several signals market participants employ to evaluate their stock investments. Some of the most useful signals are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the best money managers can outclass the S&P 500 by a solid margin (see the details here).
Ric Dillon Diamond Hill Capital
Ric Dillon of Diamond Hill Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. 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 website. With all of this in mind we're going to take a glance at the latest hedge fund action encompassing Hyster-Yale Materials Handling Inc (NYSE:HY).
Do Hedge Funds Think HY Is A Good Stock To Buy Now?
At third quarter's end, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the second quarter of 2020. Below, you can check out the change in hedge fund sentiment towards HY over the last 21 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
Is HY A Good Stock To Buy?
The largest stake in Hyster-Yale Materials Handling Inc (NYSE:HY) was held by GAMCO Investors, which reported holding $14.8 million worth of stock at the end of September. It was followed by Royce & Associates with a $7 million position. Other investors bullish on the company included Diamond Hill Capital, Arrowstreet Capital, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position GAMCO Investors allocated the biggest weight to Hyster-Yale Materials Handling Inc (NYSE:HY), around 0.16% of its 13F portfolio. Royce & Associates is also relatively very bullish on the stock, earmarking 0.08 percent of its 13F equity portfolio to HY.
As industrywide interest jumped, key hedge funds were leading the bulls' herd. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the most valuable position in Hyster-Yale Materials Handling Inc (NYSE:HY). Marshall Wace LLP had $0.5 million invested in the company at the end of the quarter. Cliff Asness's AQR Capital Management also made a $0.4 million investment in the stock during the quarter. The only other fund with a brand new HY position is D. E. Shaw's D E Shaw.
Let's go over hedge fund activity in other stocks similar to Hyster-Yale Materials Handling Inc (NYSE:HY). These stocks are Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH), MYR Group Inc (NASDAQ:MYRG), Omeros Corporation (NASDAQ:OMER), Forrester Research, Inc. (NASDAQ:FORR), Five Point Holdings, LLC (NYSE:FPH), Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), and Tilray, Inc. (NASDAQ:TLRY). All of these stocks' market caps are closest to HY's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SPWH,26,118344,-7 MYRG,10,33582,2 OMER,15,96335,8 FORR,8,73281,1 FPH,13,143746,-1 GLDD,20,96450,3 TLRY,6,18056,-5 Average,14,82828,0.1 [/table]
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $32 million in HY's case. Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH) is the most popular stock in this table. On the other hand Tilray, Inc. (NASDAQ:TLRY) is the least popular one with only 6 bullish hedge fund positions. Hyster-Yale Materials Handling Inc (NYSE:HY) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for HY is 45. 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. A small number of hedge funds were also right about betting on HY as the stock returned 54.7% since the end of the third quarter (through 12/8) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
