Five Steel Stocks Hedge Funds Love The Most

Page 3 of 3

One of the icons of America’s heavy industry, United States Steel Corporation (NYSE:X) is number two in this top. During the fourth quarter, the number of funds invested in US Steel rose from 30 to 34, according to our data. In its latest 13F filing, David E Shaw’s fund, D E Shaw, has reported a 128% increase in its holding of the stock to approximately 4.45 million shares. David Greenspan, the manager of Slate Path Capital, was also optimistic about the prospects of United States Steel Corporation (NYSE:X), having increased his fund’s investment by 48% during the fourth quarter. According to regulatory filings, Slate Path Capital’s stake in US Steel amounts to exactly 3.28 million shares. United States Steel Corporation (NYSE:X) managed to surprise investors when it announced 2017 fourth quarter results. The company posted adjusted earnings of $0.76 per share, topping analysts’ estimates of $0.68 per share. Revenue increased by 18% year-over-year to $3.13 billion, also surpassing expectations of $3.07 billion. Shares are currently trading at $44 apiece, up by roughly 23% for the year.

Hedge funds’ favorite in the steel industry at the end of 2017 was Steel Dynamics, Inc. (NASDAQ:STLD). According to data compiled by Insider Monkey, 36 top fund managers were invested in the company, up from 27 registered three months earlier. The largest stake was held by Robert Pitts’ Steadfast Capital Management, which reported ownership of approximately 4.57 million shares in its latest 13F filing, a 53% increase over the third quarter. Ken Griffin’s Citadel Investment Group was not far behind with a position that amounted to 3.37 million shares. 2017 was a very successful year for Steel Dynamics, Inc. (NASDAQ:STLD). The company posted a 22.6% increase in revenue to $9.54 billion, while operating margin rose from 9.36% in 2016 to 11.18% in 2017. Steel Dynamics, Inc. (NASDAQ:STLD) also managed to increase its profitability, with 2017 net margin rising to 8.52% from 4.91% posted for 2016. Given such a robust performance, it is no wonder top hedge fund managers have piled into the stock at the end of the year.

Disclosure: none.

Page 3 of 3