Elite Hedge Funds Making Moves in These Three Stocks

A recently-amended 13D filing disclosed that Atlantic Investment Management, founded by Alexander J. Roepers, owns 3.46 million shares in Triumph Group Inc. (NYSE:TGI), which aggregately account for 7% of the company’s outstanding shares. This denotes a decrease of 771,274 shares from the investment firm’s position in the company disclosed via the 13F filing for the June quarter. The shares of the supplier of aerospace components and systems are 34% in the red year-to-date and are trading quite cheaply if considering its trailing P/E ratio of only 12.96, compared to the ratio of 23.41 for the S&P 500. In mid-September, Boeing Co (NYSE:BA) announced that it would build in house some parts of its 747-8 jumbo jetliner, after terminating an agreement with Triumph Group Inc. (NYSE:TGI). Just recently, Triumph announced the acquisition of provider of thermal management systems and auxiliary power generation systems Fairchild Controls Corporation from Airbus Defense and Space; an acquisition that is anticipated to generate additional annual revenues of $45.0 million.

The number of hedge funds with positions in Triumph Group climbed to 30 from 27 during the second quarter, while the value of these positions increased to $672.05 million from $575.64 million. The hedge funds tracked by our team amassed almost 21% of the company’s shares at the end of the second quarter. Joel Greenblatt’s Gotham Asset Management was the second-largest equity holder of Triumph Group Inc. (NYSE:TGI) among them at the end of the second quarter, holding a 1.07 million-share stake.

As stated by a 13D filing with the SEC, Ashe Capital Management LP, founded by William Charles Crowley, William Richard Harker, and Stephen Michael Blass, currently owns 9.36 million shares in Allison Transmission Holdings Inc. (NYSE:ALSN), representing 5.5% of the company’s shares. The investment firm disclosed an ownership stake of 6.53 million shares in its 13F filing for the second quarter. At the same time, the public filing disclosed that Ashe Capital Management acquired the shares of the manufacturer of commercial duty automatic transmissions and hybrid propulsion systems, believing that they represented an attractive investment opportunity at the time of purchase. The filing also reveals that William Charles Crowley discussed with the company’s Chairman Lawrence E. Dewey at the end of October, requesting the Chairman to “convey to the Board the Reporting Persons’ request that Mr. Crowley, Cofounder and CEO of Ashe, be appointed to the Board”. In the meantime, shares of Allison Transmission Holdings Inc. (NYSE:ALSN) are currently trading at a trailing P/E ratio of 22.76, which might suggest that they do not have too much upside potential. However, its forward P/E ratio of 10.50 might point to a strong stock performance in the months and years ahead (the ratio for the S&P 500 stands at 17.65).

Even so, the shares of the company are down 17% year-to-date, which might have propelled some hedge fund investors to abandon their positions in the company. 40 hedge funds observed by our team owned the stock at the end of the second quarter, compared to 43 registered in the prior one. These money managers stockpiled 33.80% of the company’s shares on June 30, while the value of their stakes decreased to $1.78 billion from $2.11 billion quarter-over-quarter. Jeffrey Ubben’s ValueAct Capital was bullish on Allison Transmission Holdings Inc. (NYSE:ALSN) at the end of the second quarter, owning 19.13 million shares.

Disclosure: None