Is Lindsay Corporation (NYSE:LNN) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Lindsay Corporation (NYSE:LNN)’s stock lost 24% during the third quarter and it registered a decline in the hedge fund interest. The stock was included in 11 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare LNN to other stocks, including Mitel Networks Corporation (NASDAQ:MITL), Glaukos Corp (NYSE:GKOS), and GasLog Ltd (NYSE:GLOG) to get a better sense of its popularity.
If you’d ask most traders, hedge funds are assumed to be underperforming, old investment tools of yesteryear. While there are more than 8000 funds trading at present, Our experts choose to focus on the upper echelon of this group, about 700 funds. It is estimated that this group of investors have their hands on the majority of the smart money’s total asset base, and by paying attention to their inimitable stock picks, Insider Monkey has unearthed a few investment strategies that have historically outrun Mr. Market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, let’s take a look at the key action regarding Lindsay Corporation (NYSE:LNN).
How have hedgies been trading Lindsay Corporation (NYSE:LNN)?
Heading into Q4, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 15% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Chuck Royce’s Royce & Associates has the number one position in Lindsay Corporation (NYSE:LNN), worth close to $58.1 million, amounting to 0.3% of its total 13F portfolio. The second largest stake is held by Impax Asset Management, led by Ian Simm, holding an $15.6 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish, encompass Jim Simons’ Renaissance Technologies, Joel Greenblatt’s Gotham Asset Management, and Mario Gabelli’s GAMCO Investors.