4 Consumer Durables Stocks Hedge Funds Can’t Get Enough Of

2. B/E Aerospace Inc (NASDAQ:BEAV)

Investors with Long Positions (as of June 30): 50

Aggregate Value of Investors’ Holdings (as of June 30): $1.73 Billion

B/E Aerospace Inc (NASDAQ:BEAV) manufactures interior products for business jets and commercial aircraft. The hedge fund ownership of the company increased during the second quarter from 44 at the start of it, but the aggregate value of investments held by hedge funds in the stock showed a decrease of $380 million during the second quarter. This decrease in hedge funds’ holdings can be best explained by the 13.4% decline in B/E Aerospace Inc (NASDAQ:BEAV)’s stock during the quarter. Analysts at RBC Capital reiterated their ‘Outperform’ rating on the stock on August 13, but lowered their price target to $62 from $63, which represents a potential 25% upside to the stock’s current market price. Thomas Steyer‘s Farallon Capital was among the hedge funds that increased its position in the stock most notably during the April-June period, and as of June 30 held over 2.1 million shares.

1. Mohawk Industries, Inc. (NYSE:MHK)

Investors with Long Positions (as of June 30): 59

Aggregate Value of Investors’ Holdings (as of June 30): $3.88 Billion

Thanks partly to the over 25% year-to-date increase in its stock price, Mohawk Industries, Inc. (NYSE:MHK) commanded the top position in our list of most popular consumer durables stocks among hedge funds. Not only did the number of hedge funds that owned the stock increase by three from the first quarter, but the aggregate value of hedge funds’ holdings also went up by 3.1% during the April-June period.  Billionaire Dan Loeb – whose hedge fund owned 2.4 million shares of Mohawk Industries, Inc. (NYSE:MHK) at the end of June – noted in his second quarter investor letter that the cyclical recovery in Mohawk Industries, Inc. (NYSE:MHK)’s end markets along with the persistent low interest rate environment and ‘significant’ reduction in fixed-costs by the company has put a long-term “winning formula in place”.

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