The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Hyster-Yale Materials Handling Inc (NYSE:HY) .
Hyster-Yale Materials Handling Inc (NYSE:HY) investors should pay attention to an increase in hedge fund sentiment lately. HY was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. There were 9 hedge funds in our database with HY positions at the end of the previous quarter. 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 Golub Capital BDC Inc (NASDAQ:GBDC), Boise Cascade Co (NYSE:BCC), and Grupo Supervielle SA -ADR (NYSE:SUPV) to gather more data points.
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, let’s take a peek at the recent action surrounding Hyster-Yale Materials Handling Inc (NYSE:HY).
How are hedge funds trading Hyster-Yale Materials Handling Inc (NYSE:HY)?
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in HY over the last 5 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Ric Dillon’s Diamond Hill Capital has the most valuable position in Hyster-Yale Materials Handling Inc (NYSE:HY), worth close to $14.8 million. The second largest stake is held by Chuck Royce of Royce & Associates which holds a $13.4 million position. Some other professional money managers that hold long positions contain Ken Fisher’s Fisher Asset Management, Ken Griffin’s Citadel Investment Group and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these elite funds are among our list of the 100 best performing elite funds which is based on the performance of their 13F long positions in non-microcap stocks.