The benchmark S&P 500 index has jumped six points on Monday, setting a new all-time high as last week’s strong jobs report continues to buoy market sentiment. Meanwhile, some stocks are being watched closely by investors today, including CBS Corporation (NYSE:CBS), Boeing Co (NYSE:BA), Sagent Pharmaceuticals Inc (NASDAQ:SGNT), Hewlett Packard Enterprise Co (NYSE:HPE), and Medivation Inc (NASDAQ:MDVN). Let’s detail the factors drawing attention to these stocks today and analyze hedge fund sentiment towards each of them.
By analyzing the equity portfolios of 750+ top investors, we can see what stocks they are collectively bullish on and use this data to compile a portfolio that can outperform the market. We have determined through this process that the best strategy is to follow the 15 most popular small-cap picks among hedge funds, which have delivered an alpha of around 81 basis points per month in our backtests covering the period between 1999 and 2012 (see more details).
CBS Corporation to Split-Off its Radio Network
CBS Corporation (NYSE:CBS) is in the spotlight today after an SEC filing on Friday revealed that the company intends to split off its radio network, CBS Radio, and launch it as an independent public company. CBS filed for an initial offering of $100 million. The filing also shows that CBS Radio plans to take on debt before the stock sale to give to its parent company. No underwriters were named in the IPO. Shares of CBS Corporation have inched up by 0.88% today. Among the funds that we track, 61 held shares of CBS Corporation (NYSE:CBS) at the end of the first quarter, with the aggregate value of those holdings standing at $2.91 billion.
Boeing Strikes a Deal with the U.K Government
Boeing Co (NYSE:BA)’s stock has gained more than 1% today after the company struck a deal with the U.K government worth approximately $3.89 billion. According to the deal, the U.K government will buy nine new P8 marine patrol planes from the Seattle-based aerospace firm. Moreover, Boeing will deliver 50 Apache AH-64E attack helicopters and boost spending and create jobs in Britain, according to the agreement. A statement released from British Prime Minister David Cameron’s office also said that Boeing and the British government intend to work together to build a new support and training base at RAF Lossiemouth in Scotland, creating more than 100 new jobs.
A total of 93 hedge funds in our system were shareholders of Boeing on March 31, amassing approximately $4 billion worth of the company’s stock. John Armitage’s Egerton Capital Limited owned about 4.52 million shares of the company at the end of March.
On the next page we’ll take a look at the latest concerning Sagent Pharmaceuticals, HPE and Medivation.