Is Alleghany Corporation (NYSE:Y) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Is Alleghany Corporation (NYSE:Y) a buy right now? The best stock pickers are categorically getting more bullish. The number of long hedge fund bets experienced an increase of 2 lately. Y was in 24 hedge funds’ portfolios at the end of September. There were 22 hedge funds in our database with Y holdings at the end of the previous quarter. At the end of this article we will also compare Y to other stocks including Regency Centers Corp (NYSE:REG), ANSYS, Inc. (NASDAQ:ANSS), and Plains GP Holdings LP (NYSE:PAGP) 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.
What does the smart money think about Alleghany Corporation (NYSE:Y)?
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a gain of 9% from the previous quarter. The graph below displays the number of hedge funds with bullish position in Y over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Royce & Associates, led by Chuck Royce, holds the number one position in Alleghany Corporation (NYSE:Y). Royce & Associates has a $96.1 million position in the stock. The second most bullish fund manager is First Pacific Advisors LLC, led by Robert Rodriguez and Steven Romick, which holds a $88.1 million position. Some other professional money managers with similar optimism include Martin Whitman’s Third Avenue Management, Cliff Asness’ AQR Capital Management and John Osterweis’ Osterweis Capital Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.