What Hedge Funds Think of Firearms Stocks

#4. Sturm, Ruger & Company (NYSE:RGR)

– Investors with long positions as of March 31: 17

– Aggregate value of investors’ holdings as of March 31: $88.18 Million

The smart money sentiment towards Sturm, Ruger & Company (NYSE:RGR) increased during the first three months of 2016, when the number of hedge funds from our database with stakes in the company climbed to 17 from 14 quarter-over-quarter. Nevertheless, the overall value of those stakes shrunk to $88.18 million from $90.68 million even though the shares of the U.S. gun manufacturer gained 15% for the quarter. Thus, the hedge funds tracked by our team were actually trimming their exposure to the company during the first quarter. The shares of the designer and manufacturer of firearms have plunged by 9% over the past five trading sessions because of the data showing a lower number of would-be buyers who had received background checks. The stock is up a little less than 1% for the year. Sturm, Ruger & Company’s firearms net sales for the three months that ended April 2 were $171.5 million, which increased by an impressive 26.5% year-over-year. Ken Griffin’s Citadel Advisors LLC was the owner of nearly 76,000 shares of Sturm, Ruger & Company (NYSE:RGR) at the end of March.

#3. Vista Outdoor Inc. (NYSE:VSTO)

– Investors with long positions as of March 31: 23

– Aggregate value of investors’ holdings as of March 31: $769.41 Million

The number of asset managers from our system with stakes in Vista Outdoor Inc. (NYSE:VSTO) remained unchanged during the first quarter at 23, while the aggregate value of those stakes jumped to $769.41 million from $757.93 million. The 23 asset managers invested in Vista Outdoor accumulated roughly 24% of the company’s total number of outstanding shares. The designer and manufacturer of consumer products in the outdoor sports and recreation markets, which also sells sporting ammunition and firearms, has seen its market value jump by nearly 8% since the beginning of 2016. Vista Outdoor had annual sales of $2.27 billion for fiscal year that ended March 31, up from $2.08 billion reported for the previous fiscal year. The increase was mainly attributable to the acquisition of CamelBak Products LLC, a provider of hydration system solutions, the acquisition of Jimmy Styks, a designer and marketer of stand-up paddle boards, as well as higher demand within the shooting sports market. Iridian Asset Management, founded by David Cohen and Harold Levy, has 1.96 million shares of Vista Outdoor Inc. (NYSE:VSTO) among its pool of holdings as of the end of the March quarter.