In this article, we will take a look at the top 10 stocks to sell now according to Christopher Hillary’s Roubaix Capital. You can skip our detailed analysis of Christopher Hillary’s history, investment philosophy, and hedge fund performance and go directly to 5 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital.
Roubaix Capital was founded by Christopher Hillary in 2015. From 2015 to the present, Hillary is serving as the CEO and portfolio manager at Roubaix Capital. His experience expands from working as a generalist analyst at Marsico Capital Management from 2001 to 2004 to serving as the senior analyst at Independence Capital Assets Partners (ICAP) from 2004 to 2015. He got his MBA degree from the University of Colorado.
The investment philosophy of Christopher Hillary employs a long/short equity strategy. Hillary targets small- and medium-cap stocks. Since small- and medium-sized businesses are more affected by the market drivers hence they can create or destroy value more significantly over the investment cycle.
At the end of the September quarter, Roubaix Capital has accumulated a total of $152.54 million in managed 13F securities. In the third quarter of 2021, the hedge fund has invested 28.74% of the portfolio in the IT sector.
In 2020, the hedge fund gained an impressive 46.17% on a net basis while 17.49% for the HFRI Equity Hedge Index and 19.96% for the Russell 2000 Index.
Our Methodology
This list is compiled by picking the top sales of Roubaix Capital in the third quarter of 2021. The fund sold its entire stakes in the following companies in the third quarter.
10 Stocks to Sell Now According to Christopher Hillary’s Roubaix Capital
10. Designer Brands Inc. (NYSE:DBI)
Number of Hedge Fund Holders: 19
Designer Brands Inc. (NYSE:DBI) is an Ohio-based company working in the consumer discretionary sector. It designs, manufactures, and sells retail footwear and accessories for all genders in North America. As of February 2021, the company owned and operated 663 stores.
Roubaix Capital sold 175,058 shares, worth $2.9 million, in Designer Brands Inc. in the third quarter of 2021.
On September 01, 2021, Deutsche Bank raised its price target on Designer Brands Inc. to $19 from $18 and maintained a “Hold” rating. Analyst Gabriella Carbone issued this rating due to impressive Q2 results.
According to the Insider Monkey’s database tracking 867 hedge funds in the third quarter of 2021, 19 hedge funds have stakes in Designer Brands Inc., valued at $130 million. The number has decreased from 23 in the previous quarter, valued at $133 million.
9. Stoneridge, Inc. (NYSE:SRI)
Number of Hedge Fund Holders: 9
Stoneridge, Inc. (NYSE:SRI) is based in Michigan that designs and manufactures automobile parts, electrical and electronic components for automotive, commercial, motorcycle, and agricultural vehicles.
Roubaix Capital sold its entire stake in the company in the third quarter.
On October 13, 2021, Barrington downgraded its rating on the stock to “Market Perform” from “Outperform.” Barrington’s analyst Gary Prestopino said that the downgraded rating was due to lower-than-expected Q3 results and supply chain-related challenges.
According to Insider Monkey’s database, Stoneridge, Inc. is in the portfolio of 9 hedge funds at the end of the third quarter of 2021, valued at $39.75 million.
Chuck Royce’s Royce & Associates holds the highest number of shares in Stoneridge, Inc. among hedge fund investors.
8. Astronics Corporation (NASDAQ:ATRO)
Number of Hedge Fund Holders: 13
Astronics Corporation (NASDAQ:ATRO) is based in New York and provides services in the industrial sector. The company is engaged in designing, and manufacturing products for aerospace, and defense industries in the US, North America, Asia, Europe, and internationally.
Founded in 1968, the company has attracted investments from 13 hedge funds, valued at $79.87 million, as tracked by Insider Monkey at the end of the third quarter of 2021, down from 19 hedge funds in the previous quarter, valued at $95 million.
In the third quarter of 2021, Christopher Hillary’s Roubaix Capital sold its 178,038 shares in Astronics Corporation which were valued at $3.12 million.
7. Sierra Wireless, Inc. (NASDAQ:SWIR)
Number of Hedge Fund Holders: 14
Sierra Wireless, Inc. (NASDAQ:SWIR) is a Canadian company operating in the technology sector. The company designs and provides Internet of Things (IoT) solutions like cloud management software, cellular modules, and connectivity services.
Christopher Hillary’s Roubaix Capital sold 165,413 shares of the company in the third quarter, valued at $3.14 million. The fund had no stake in the company as of the start of the fourth quarter.
14 hedge funds have stakes in Sierra Wireless, Inc. as of the third quarter end of 2021, valued at $178.67 million, according to the database of Insider Monkey.
6. Deluxe Corporation (NYSE:DLX)
Number of Hedge Fund Holders: 11
Roubaix Capital sold all of its shares in Deluxe Corporation (NYSE:DLX) in the third quarter of 2021. The company provides services in the communication services sector by offering technology-enabled financial and advertising solutions to small businesses.
In the September quarter of 2021, Deluxe Corporation posted an EPS of $1.10, beating the market consensus by $0.02. Revenue for the third quarter totaled $532 million, beating the market estimates by $11.4 million.
As of the end of the third quarter of 2021, Roubaix Capital sold all of its 67,327 shares of the company, worth $3.22 million. These shares formed 2% of the 13F portfolio in the previous quarter.
On September 01, 2021, Cowen initiated its coverage on Deluxe Corporation with an “Outperform” rating and a price target of $55.
5. Metropolitan Bank Holding Corp. (NYSE:MCB)
Number of Hedge Fund Holders: 23
According to hedge funds data tracked by Insider Monkey, 23 hedge funds have investments in Metropolitan Bank Holding Corp. (NYSE:MCB) at the end of the third quarter of 2021, worth over $176 million. Metropolitan Bank Holding Corp. provides financial services to business, commercial, and retail consumers through its Metropolitan Commercial Bank.
Roubaix Capital sold 57,363 of its shares in Metropolitan Bank Holding Corp. in the third quarter of 2021, valued at $3.45 million.
In the September quarter of 2021, Metropolitan Bank Holding Corp. reported an EPS of $1.82, beating the market estimates by $0.26. Revenue for Q3 came in at $46.68 million, beating the market consensus by $2.08 million.
4. Rent-A-Center, Inc. (NASDAQ:RCII)
Number of Hedge Fund Holders: 28
Rent-A-Center, Inc. (NASDAQ:RCII) is a Texas-based company operating in the industrial sector. The company is engaged in the leasing of durable goods to customers on a lease-to-own basis. These goods include furniture, appliances, consumer electronics, and computer.
Insider Monkey tracked that Rent-A-Center, Inc. was in the portfolio of 28 hedge funds in the September quarter of 2021, valued at $379 million.
In the second quarter of 2021, Roubaix Capital held 74,517 shares in Rent-A-Center, Inc., valued at $3.96 million, which the hedge fund sold in the third quarter of 2021.
In the third quarter filings, Rent-A-Center, Inc. posted an EPS of $1.52, beating the market estimates by $0.03. Q3 revenue came in at $1.18 billion, beating the market consensus by $2.78 million.
Raymond James, on November 05, 2021, lowered its price target on Rent-A-Center, Inc. to $65 from $70 and kept a “Strong Buy” rating on the shares. Engaged Capital is the leading hedge fund investor in Rent-A-Center, Inc. as of the third quarter of 2021.
3. Genius Sports Ltd (NYSE:GENI)
Number of Hedge Fund Holders: 31
Roubaix Capital sold all 221,289 shares in Genius Sports Ltd (NYSE:GENI) in the third quarter, valued at $4.15 million. Washington Harbour Partners is the leading hedge fund investor in Genius Sports Ltd (NYSE:GENI) as of the end of Q3 2021.
On December 01, 2021, Citi lowered its price target on the stock to $13 from $22 and continued a “Buy” rating on the stock.
2. Immersion Corporation (NASDAQ:IMMR)
Number of Hedge Fund Holders: 16
Immersion Corporation (NASDAQ:IMMR) is based in California and operates as a tech company by developing and licensing haptic technology. This technology is used in various appliances like mobiles, medical training equipment, and consoles.
Insider Monkey tracked that 16 hedge funds had stakes in Immersion Corporation in the September quarter of 2021. These stakes are valued at $51.4 million. The number of the hedge fund has decreased from 21 as tracked in the previous quarter, showing a negative hedge fund sentiment.
Roubaix Capital held 526,278 shares of the company in the second quarter of 2021, worth $4.62 million, which the hedge fund sold in the third quarter.
1. Repro Med Systems, Inc. (NASDAQ:KRMD)
Number of Hedge Fund Holders: 9
Repro Med Systems, Inc. (NASDAQ:KRMD) is a New York-based healthcare company that develops, manufactures, and markets medical devices and instruments in the US and internationally.
Stakes worth $8.6 million are invested in Repro Med Systems, Inc. by 9 hedge funds as of the end of September quarter of 2021, as tracked by Insider Monkey.
Roubaix Capital sold its 1.53 million shares in Repro Med Systems, Inc. in the third quarter of 2021, valued at $7.105 million.
On November 10, 2021, Repro Med Systems, Inc. reported its Q3 EPS to be $0.02 in line with the market estimates. Similarly, revenue came in at $6 million, beating the estimates of $5.42 million.
You can also take a peek at 10 Best Stocks to Buy According to Warren Buffett and 10 Healthcare Stocks to Buy According to John Rogers’ Ariel Investments.
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This article is originally published at Insider Monkey.
