The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a turbulent quarter, which propelled them to adjust their equity holdings so as to maintain their desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards REGAL-BELOIT CORPORATION (NYSE:RBC).
REGAL-BELOIT CORPORATION (NYSE:RBC) shareholders have witnessed a decrease in activity from the world’s largest hedge funds recently. RBC was in 20 hedge funds’ portfolios at the end of September. There were 22 hedge funds in our database with RBC holdings at the end of the previous quarter. At the end of this article we will also compare RBC to other stocks including The Medicines Company (NASDAQ:MDCO), NorthWestern Corp (NYSE:NWE), and Prospect Capital Corporation (NASDAQ:PSEC) to get a better sense of its popularity.
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To most market participants, hedge funds are viewed as worthless, outdated financial tools of yesteryear. While there are more than an 8,000 funds trading today, our experts look at the leaders of this group, about 700 funds. These investment experts preside over most of the smart money’s total capital, and by watching their finest picks, Insider Monkey has unsheathed numerous investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, we’re going to take a glance at the key action surrounding REGAL-BELOIT CORPORATION (NYSE:RBC).
What does the smart money think about REGAL-BELOIT CORPORATION (NYSE:RBC)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 9% slide from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly (or had already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Millennium Management, managed by Israel Englander, holds the biggest position in REGAL-BELOIT CORPORATION (NYSE:RBC). Millennium Management has a $45.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second-largest stake is held by Fisher Asset Management, managed by Ken Fisher, which holds a $30.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism contain Lee Munder’s Lee Munder Capital Group, Dmitry Balyasny’s Balyasny Asset Management, and Chuck Royce’s Royce & Associates.
Judging by the fact that REGAL-BELOIT CORPORATION (NYSE:RBC) has faced declining sentiment from hedge fund managers, we can see that there were a few money managers that elected to cut their positions entirely last quarter. Interestingly, Richard S. Pzena’s Pzena Investment Management dropped the largest position of the 700 funds followed by Insider Monkey, totaling an estimated $13.5 million in stock, and Gregg Moskowitz’s Interval Partners was right behind this move, as the fund cut about $1.2 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to REGAL-BELOIT CORPORATION (NYSE:RBC). These stocks are The Medicines Company (NASDAQ:MDCO), NorthWestern Corp (NYSE:NWE), Prospect Capital Corporation (NASDAQ:PSEC), and Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP). This group of stocks’ market valuations are similar to RBC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MDCO | 19 | 809032 | -1 |
| NWE | 12 | 62313 | 3 |
| PSEC | 12 | 28133 | 0 |
| RHP | 18 | 456345 | -2 |
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $339 million. That figure was $223 million in RBC’s case. The Medicines Company (NASDAQ:MDCO) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks REGAL-BELOIT CORPORATION (NYSE:RBC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
