Is Stoneridge, Inc. (NYSE:SRI) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
To the average investor there are several gauges market participants can use to value stocks. Two of the most useful gauges are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top fund managers can outclass the market by a solid amount (see the details here).
We’re going to take a look at the recent hedge fund action regarding Stoneridge, Inc. (NYSE:SRI).
What have hedge funds been doing with Stoneridge, Inc. (NYSE:SRI)?
Heading into the fourth quarter of 2018, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards SRI over the last 13 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Jim Simons’s Renaissance Technologies has the biggest position in Stoneridge, Inc. (NYSE:SRI), worth close to $23.8 million, comprising less than 0.1%% of its total 13F portfolio. Coming in second is Royce & Associates, led by Chuck Royce, holding a $20.3 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions encompass Cliff Asness’s AQR Capital Management, Mario Gabelli’s GAMCO Investors and Peter S. Park’s Park West Asset Management.
Consequently, some big names have been driving this bullishness. Park West Asset Management, managed by Peter S. Park, established the most valuable position in Stoneridge, Inc. (NYSE:SRI). Park West Asset Management had $6.7 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $4.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Mark Lee’s Forest Hill Capital, Benjamin A. Smith’s Laurion Capital Management, and David Costen Haley’s HBK Investments.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Stoneridge, Inc. (NYSE:SRI) but similarly valued. These stocks are American Outdoor Brands Corporation (NASDAQ:AOBC), CalAmp Corp. (NASDAQ:CAMP), Global Cord Blood Corporation (NYSE:CO), and CSW Industrials, Inc. (NASDAQ:CSWI). This group of stocks’ market valuations match SRI’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
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As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $104 million in SRI’s case. American Outdoor Brands Corporation (NASDAQ:AOBC) is the most popular stock in this table. On the other hand Global Cord Blood Corporation (NYSE:CO) is the least popular one with only 7 bullish hedge fund positions. Stoneridge, Inc. (NYSE:SRI) 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 AOBC might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.