Is Kadant Inc. (NYSE:KAI) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Kadant Inc. (NYSE:KAI) was in 15 hedge funds’ portfolios at the end of September. KAI has experienced an increase in support from the world’s most elite money managers in recent months. There were 13 hedge funds in our database with KAI holdings 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 Winmark Corporation (NASDAQ:WINA), Golden Ocean Group Ltd (NASDAQ:GOGL), and La Jolla Pharmaceutical Company (NASDAQ:LJPC) to gather more data points.
In the eyes of most stock holders, hedge funds are assumed to be unimportant, old financial vehicles of years past. While there are more than 8000 funds with their doors open at present, We choose to focus on the masters of this club, about 700 funds. These investment experts direct the lion’s share of all hedge funds’ total asset base, and by monitoring their unrivaled equity investments, Insider Monkey has brought to light a few investment strategies that have historically outstripped the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to go over the recent action regarding Kadant Inc. (NYSE:KAI).
What does the smart money think about Kadant Inc. (NYSE:KAI)?
At the Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Chuck Royce’s Royce & Associates has the number one position in Kadant Inc. (NYSE:KAI), worth close to $10.3 million, corresponding to 0.1% of its total 13F portfolio. Coming in second is Renaissance Technologies, which holds an $5.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions comprise Paul Hondros’ AlphaOne Capital Partners, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.