5 Key Moves Made By This Chicago-Based Hedge Fund Last Quarter: Analogic Corporation (ALOG), MYR Group Inc (MYRG)

Page 1 of 2

Last month, we took a look at Ken Grossman and Glen Schneider’s SG Capital Management, a Chicago-based investment advisory firm. Our original analysis focused on SG Capital’s top small-cap holdings, because as we’ve mentioned in our market-beating strategy, this space typically generates the most alpha for investors. Between 1999 and 2009, the 15 most popular small-cap stocks among hedge funds beat the market by more than 15 percentage points per year. This stratey also outperformed tha S&P500 index by 18 percentage points since September (see how to capitalize on this market-beating strategy here).

Still, it’s also important to analyze the major changes that occurred SG Capital’s portfolio last quarter, which is made possible by looking at its fourth quarter 13F filing with the SEC. According to this record, there were a few movers and shakers, so to speak; we’ll detail them below. Let’s get started.

Analogic Corporation (NASDAQ:ALOG)

Bearish Bets

At the end of the third quarter, Analogic Corporation (NASDAQ: ALOG) and Clean Harbors Inc (NYSE: CLH) were two of Grossman and Schneider’s top three investments (see the full list here), so it’s notable that the fund closed out its position in both stocks in Q4.

Clean Harbors, a heavily diversified waste management company, is down 4.6% since the start of February, and optimism over the company’s Safety-Kleen acquisition has been offset by the recent resignation of its CFO. At a PEG in excess of 2.0 and premium book valuation of 30% above its industry’s average, shares of Clean Harbors are not cheap, and it’s likely that SG Capital took its gains sometime after the Safety-Kleen acquisition was announced late last October.

Analogic Corp, meanwhile, has been a solid investment over the past months, appreciating by more than 28 percentage points. The tech company known for its variety of imaging systems has beaten the Street’s earnings estimates in three of the past four quarters, with its latest miss coming when it reported Q1 results last December. Since this negative surprise, which was partially attributed to “market headwinds,” shares of Analogic have still risen 11.8%. It’s possible that SG Capital was satisfied with their gains last fall, and noticed that at 2.1 times book and 21.4 times forward earnings, this stock’s not really a splendid value or momentum play at the moment.

Bullish Bets

On the flip side, SG Capital was only strengthening its positions in two of its top 20 holdings from the previous quarter: MYR Group Inc (NASDAQ: MYRG) and Korn/Ferry International (NYSE:KFY). MYR Group is an electrical contracting company that has beaten analysts’ EPS and revenue estimates in three of the last four quarters, and both top and bottom lines are demonstrating solid expansion. MYR Group is rather cheap using nearly every metric under the sun, and the sell-side expects earnings growth to accelerate very quickly over the next half-decade. Early forecasts project 19-20% annual EPS growth through 2017; shares still trade at a PEG of 0.80.

Who’s the best of the rest?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!