It is important for a retail investor to diversify his/her investments. Even though a sector might seem high flying, but you never know when things turn sour. The recent fall of the healthcare sector is one such example. Keeping this in mind we have formulated a list of five consumer durable stocks that have gained significant attention from hedge funds and other smart money investors in our database.
In the eyes of most traders, hedge funds are assumed to be underperforming, old investment tools of the past. While there are more than 8,000 funds in operation at present, Insider Monkey looks at only the aristocrats of this group, around 730 funds. Contrary to popular belief, Insider Monkey’s research revealed that hedge funds underperformed in recent years because of their short positions as well as the huge fees that they charge, not because they are not good at picking stocks on the long side of their portfolios. Hedge funds did in fact manage to outperform the market on the long side of their portfolios. According to our backtests, the (see the details here).
#5 Jarden Corp (NYSE:JAH)
Investors with Long Positions (as of September 30): 42
Aggregate Value of Investors’ Holdings (as of September 30): $1.46 Billion
During the third quarter the total number of hedge funds holding Jarden Corp (NYSE:JAH) in their portfolios increased by nine while the aggregate value of their holdings inched down by 3.3%. The stock price fell by more than 6% during this period signalling that hedgies were generally bullish on the company. Betting on Jarden in the last quarter of 2015, seems to have been a good bet, since the stock rallied by nearly 17%.
Jarden Corp is expected to release its financial results for the last quarter in a couple of days, meanwhile, analysts expects it to deliver EPS of $1.19 on revenue of $2.67 billion, which would represent an annual revenue growth of nearly 10%. Among the funds we track, Larry Robbins‘ Glenview Capital is the largest stockholder of Jarden Corp (NYSE:JAH) as it owns about 4.03 million shares, according to its last 13F filing.