Curtiss-Wright Corp. Hedge Funds Are No Longer. (CW)
As the market is dragged down by short-term sentiment influenced by the accommodating US interest rate environment, virus news and stimulus spending, many smart investors are starting to be cautious about the current uptrend since March 2020 and to hedge or reduce their long positions. Some fund managers bet on the Dow Jones reaching 40,000 to generate solid returns. However, as we know, large investors usually buy stocks with strong fundamentals that can generate gains in both bullish and bearish markets, which is why we believe we can profit from emulating them. In this article, we’ll take a look at the smart money feeling that surrounds Curtiss-Wright Corp. (NYSE:CW).
Curtiss-Wright Corp. (NYSE:CW) shareholders have recently witnessed a decline in the activity of the world’s largest hedge funds. Curtiss-Wright Corp. (NYSE:CW) appeared in 22 hedge fund portfolios at the end of March. The all-time high for this statistic is 26. Our calculations have also shown that CW is not among the 30 most popular stocks among hedge funds (click for Q1 ranking).
The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Hedge funds have over $ 3.5 trillion in assets under management, so you can’t expect all of their portfolios to beat the market with significant margins. Our research identified in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 115 percentage points since March 2017 (see details here). So you can still find a lot of gems by following the movements of hedge funds today.
Minhua Zhang of Weld Capital Management
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, Chuck Schumer recently said legalizing marijuana would be a Senate priority. So we check this under the radar stock who will benefit. We go through lists like the 10 best stocks of batteries to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to market arguments at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. With that in mind, let’s take a look at the recent hedge fund action regarding Curtiss-Wright Corp. (NYSE:CW).
Do hedge funds think CW is a good stock to buy now?
Heading into the second quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the fourth quarter of 2020. The chart below shows the number of funds. bullish speculative. position in CW during the last 23 quarters. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Israel Englander’s Millennium Management holds the largest position in Curtiss-Wright Corp. (NYSE: CW), valued at nearly $ 86.2 million, corresponding to 0.1% of its total 13F portfolio. Sitting in second place, GAMCO Investors, led by Mario Gabelli, holds a position of $ 34.8 million; 0.3% of its 13F portfolio is allocated to society. Other professional fund managers with similar optimism include Cliff Asness AQR Capital management, DE Shaw from DE Shaw and Fisher Asset Management from Ken Fisher. In terms of the portfolio weights assigned to each position, Prospector Partners assigned the largest weight to Curtiss-Wright Corp. (NYSE: CW), around 1.12% of its 13F portfolio. Holdings LP Value is also relatively very bullish on the stock, designating 0.49% of its 13F equity portfolio to CW.
Judging by the fact that Curtiss-Wright Corp. (NYSE: CW) has seen a drop in interest from all of the hedge funds we track, logic dictates that there is a certain “level” of fund managers who have chosen to cut all of the hedge funds we track. their holdings. in Q2. It should be mentioned that Phill Gross and Robert Atchinson Adage Capital Management dropped the biggest investment from the “top crust” of funds tracked by Insider Monkey, valued at $ 29.6 million in stocks. Peter Rathjens, Bruce Clarke and the John Campbell Fund, Arrowstreet Capital, also dropped its shares, valued at around $ 10.1 million. These bearish behaviors are interesting, as overall hedge fund interest fell by 1 fund before the second quarter.
Now let’s review hedge fund activity in other stocks – not necessarily in the same industry as Curtiss-Wright Corp. (NYSE: CW) but of similar value. These shares are Nomad Foods Limited (NYSE:NAME OF), Lancaster Colony Corporation (NASDAQ:LANC), Nevro Corp (NYSE:NVRO), Xerox Holdings Corporation (NYSE:XRX), SelectQuote, Inc. (NYSE:SLQT), Magnite Inc. (NASDAQ:MGNI) and Allegro MicroSystems, Inc. (NASDAQ:ALGM). All the market caps of these stocks are similar to the market cap of CW.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position NOMD, 25.324331, -3 LANC, 22.246061.3 NVRO, 29.649613, -1 XRX, 30.1044775, 3 SLQT, 17.185055, -2 MGNI, 25.335746, -4 ALGM, 17.90381.1 Medium, 23.6.410852, -0.4 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 23.6 hedge funds with bullish positions and the average amount invested in these stocks was $ 411 million. That figure was $ 209 million in the case of CW. Xerox Holdings Corporation (NYSE:XRX) is the most popular action in this table. On the other hand, SelectQuote, Inc. (NYSE:SLQT) is the least popular with only 17 bullish hedge fund positions. Curtiss-Wright Corp. (NYSE: CW) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for CW is 48.6. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we prefer to spend our time researching the stocks that hedge funds are accumulating on. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020 and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 23.8% in 2021 through July 16 and again topped the market by 7.7 percentage points. Unfortunately, CW was not as popular as these 5 stocks (hedge fund sentiment was rather bearish); CW investors were disappointed as the stock has returned -2.1% since the end of March (through 7/16) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market in 2021.
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Disclosure: none. This article originally appeared on Monkey initiate.