While the boundaries of the environment industry are unknown and not easily defined, Insider Monkey decided to compile a list of five environmental solutions stocks hedge funds tracked by our team favor. The environment industry supplies pollution control, reduction, cleanup and waste handling equipment and related services, as well as a fast-growing range of other environmental services. The U.S. environmental market is anticipated to grow at a rate twice the growth rate of the U.S. economy. This impressive growth will most likely be spurred by continuous construction activity, in addition to state and local infrastructure spending. Without further ado, let’s have a look at the five environmental solutions stocks most loved by the hedge fund vehicles tracked by Insider Monkey.
At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
#5. Clean Harbors Inc. (NYSE:CLH)
– Investors with long positions as of March 31: 13
– Aggregate value of investors’ holdings as of March 31: $191.00 Million
Clean Harbors Inc. (NYSE:CLH) fell out of favor with the hedge funds monitored by Insider Monkey during the first quarter of 2016, as the number of funds with stakes in the company fell to 13 from 18 quarter-over-quarter. In spite of this decline, the overall value of those stakes rose to $191.00 million from $182.40 million. The 13 funds invested in Clean Harbors amassed nearly 7% of the company’s outstanding common stock. The provider of environmental, energy and industrial services has seen its market value jump by 26% since the beginning of 2016. The company provides a wide array of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. As a result, Clean Harbors’ revenues for the first three months of the year dropped 13.2% year-over-year to $636.1 million, partially due to continued weakness in crude oil markets and decreases in commodity pricing. Ian Simm’s Impax Asset Management upped its stake in Clean Harbors Inc. (NYSE:CLH) by 40% during the March quarter to 593,370 shares.