Should You Buy Carpenter Technology Corporation (NYSE:CRS)?

Is Carpenter Technology Corporation (NYSE:CRS) a healthy stock for your portfolio? The smart money is taking a bullish view. The number of long hedge fund positions increased by 1 recently.

If you’d ask most stock holders, hedge funds are perceived as worthless, outdated investment tools of the past. While there are more than 8000 funds with their doors open at the moment, we choose to focus on the upper echelon of this club, about 450 funds. It is widely believed that this group oversees the majority of the hedge fund industry’s total asset base, and by monitoring their highest performing stock picks, we have unearthed a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as important, bullish insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are a number of stimuli for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).

With these “truths” under our belt, we’re going to take a look at the key action regarding Carpenter Technology Corporation (NYSE:CRS).

What have hedge funds been doing with Carpenter Technology Corporation (NYSE:CRS)?

At the end of the fourth quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 6% from the third quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in Carpenter Technology Corporation (NYSE:CRS). Citadel Investment Group has a $45 million position in the stock, comprising 0.1% of its 13F portfolio. On Citadel Investment Group’s heels is Royce & Associates, managed by Chuck Royce, which held a $27 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include John Burbank’s Passport Capital, Richard Driehaus’s Driehaus Capital and Jim Simons’s Renaissance Technologies.

Consequently, key money managers have been driving this bullishness. Carlson Capital, managed by Clint Carlson, created the most valuable position in Carpenter Technology Corporation (NYSE:CRS). Carlson Capital had 8 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $1 million position during the quarter. The other funds with brand new CRS positions are Ken Gray and Steve Walsh’s Bryn Mawr Capital, Glenn Russell Dubin’s Highbridge Capital Management, and SAC Subsidiary’s Sigma Capital Management.

How are insiders trading Carpenter Technology Corporation (NYSE:CRS)?

Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last six-month time frame, Carpenter Technology Corporation (NYSE:CRS) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

With the results shown by the aforementioned tactics, retail investors must always pay attention to hedge fund and insider trading sentiment, and Carpenter Technology Corporation (NYSE:CRS) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!