The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Exterran Corp (NYSE:EXTN).
Exterran Corp (NYSE:EXTN) investors should pay attention to a decrease in hedge fund interest lately. EXTN was in 13 hedge funds’ portfolios at the end of September. There were 17 hedge funds in our database with EXTN positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as CoBiz Financial Inc (NASDAQ:COBZ), Student Transportation Inc (NASDAQ:STB), and First Trust High Income Long/short Fund (NYSE:FSD) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Hedge fund activity in Exterran Corp (NYSE:EXTN)
At Q3’s end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a fall of 24% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards EXTN over the last 5 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Alec Litowitz and Ross Laser’s Magnetar Capital holds the largest position in Exterran Corp (NYSE:EXTN). Magnetar Capital has a $51.2 million position in the stock. On Magnetar Capital’s heels is Clint Carlson’s Carlson Capital holding a $28.3 million position. Other peers with similar optimism include J. Carlo Cannell’s Cannell Capital, Millennium Management, one of the 10 largest hedge funds in the world, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.