The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Cytec Industries Inc (NYSE:CYT).
Cytec Industries Inc (NYSE:CYT) has seen an increase in support from the world’s most elite money managers in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Liberty Broadband Corp (NASDAQ:LBRDK), Assurant, Inc. (NYSE:AIZ), and Calpine Corporation (NYSE:CPN) to gather more data points.
Follow Cytec Industries Inc (NYSE:CYT)
Follow Cytec Industries Inc (NYSE:CYT)
Today there are several signals stock traders have at their disposal to value their holdings. A pair of the less known signals are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the elite investment managers can outpace the market by a significant amount (see the details here).
Keeping this in mind, let’s take a look at the recent action regarding Cytec Industries Inc (NYSE:CYT).
What does the smart money think about Cytec Industries Inc (NYSE:CYT)?
At Q3’s end, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a surge of 113% from the second quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Water Island Capital, managed by John Orrico, holds the number one position in Cytec Industries Inc (NYSE:CYT). Water Island Capital has a $99 million position in the stock, comprising 5.1% of its 13F portfolio. Coming in second is D E Shaw, managed by D. E. Shaw, which holds a $88.4 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions include Robert Emil Zoellner’s Alpine Associates, Matthew Halbower’s Pentwater Capital Management and Clint Carlson’s Carlson Capital.
Consequently, specific money managers were leading the bulls’ herd. Water Island Capital, managed by John Orrico, established the most valuable position in Cytec Industries Inc (NYSE:CYT), worth some $99 million as previously stated. Robert Emil Zoellner’s Alpine Associates also initiated a $81.3 million position during the quarter. The other funds with brand new CYT positions are Matthew Halbower’s Pentwater Capital Management, Clint Carlson’s Carlson Capital, and Paul Glazer’s Glazer Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Cytec Industries Inc (NYSE:CYT) but similarly valued. We will take a look at Liberty Broadband Corp (NASDAQ:LBRDK), Assurant, Inc. (NYSE:AIZ), Calpine Corporation (NYSE:CPN), and Relx PLC (ADR) (NYSE:RELX). This group of stocks’ market caps match CYT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LBRDK | 28 | 890000 | -1 |
| AIZ | 20 | 432750 | 3 |
| CPN | 38 | 983254 | -2 |
| RELX | 5 | 2907 | 4 |
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $577 million. In the case of CYT, that figure was $850 million. Calpine Corporation (NYSE:CPN) is the most popular stock in this table, whereas Relx PLC (ADR) (NYSE:RELX) is the laggard with only 5 bullish hedge fund positions. Cytec Industries Inc (NYSE:CYT) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CPN might be a better candidate to consider a long position.
