Before we spend days researching a stock idea we’d like to take a look at how hedge funds and billionaire investors recently traded that stock. S&P 500 Index returned about 7.6% during the last 12 months ending November 21, 2016. Most investors don’t notice that less than 49% of the stocks in the index outperformed the index. This means you (or a monkey throwing a dart) have less than an even chance of beating the market by randomly picking a stock. On the other hand, the top 30 mid-cap stocks among the best performing hedge funds had an average return of 18% during the same period. Hedge funds had bad stock picks like everyone else. We are sure you have read about their worst picks, like Valeant, in the media over the past year. So, taking cues from hedge funds isn’t a foolproof strategy, but it seems to work on average. In this article, we will take a look at what hedge funds think about Amphenol Corporation (NYSE:APH).
Amphenol Corporation (NYSE:APH) has seen an increase in hedge fund sentiment in recent months. APH was in 21 hedge funds’ portfolios at the end of the third quarter of 2016. There were 19 hedge funds in our database with APH positions at the end of the previous quarter. At the end of this article we will also compare APH to other stocks including Republic Services, Inc. (NYSE:RSG), Under Armour Inc (NYSE:UA), and Hartford Financial Services Group Inc (NYSE:HIG) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, we’re going to take a gander at the latest action regarding Amphenol Corporation (NYSE:APH).
How have hedgies been trading Amphenol Corporation (NYSE:APH)?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a gain of 11% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Robert Joseph Caruso’s Select Equity Group has the largest position in Amphenol Corporation (NYSE:APH), worth close to $190.6 million, comprising 1.6% of its total 13F portfolio. Sitting at the No. 2 spot is Anand Parekh of Alyeska Investment Group, with a $35.3 million position; 0.4% of its 13F portfolio is allocated to the company. Some other professional money managers with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Ken Griffin’s Citadel Investment Group and Benjamin A. Smith’s Laurion Capital Management.