Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Milacron Holdings Corp (NYSE:MCRN).
Milacron Holdings Corp has seen a decrease in enthusiasm from smart money in recent months. At the end of this article we will also compare MCRN to other stocks including Redwood Trust, Inc. (NYSE:RWT), Ixia (NASDAQ:XXIA), and Universal Forest Products, Inc. (NASDAQ:UFPI) to get a better sense of its popularity.
Keeping this in mind, let’s take a peek at the recent action encompassing Milacron Holdings Corp (NYSE:MCRN).
What does the smart money think about Milacron Holdings Corp (NYSE:MCRN)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -31% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Levin Capital Strategies, managed by John A. Levin, holds the largest position in Milacron Holdings Corp (NYSE:MCRN). Levin Capital Strategies has a $22.3 million position in the stock, comprising 0.4% of its 13F portfolio. On Levin Capital Strategies’s heels is Phill Gross and Robert Atchinson of Adage Capital Management, with a $14 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish contain Ken Griffin’s Citadel Investment Group, Leon Cooperman’s Omega Advisors and David Costen Haley’s HBK Investments.