With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter of 2021. One of these stocks was Celestica Inc. (NYSE:CLS).
Celestica Inc. (NYSE:CLS) was in 21 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 18. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. CLS investors should pay attention to an increase in enthusiasm from smart money recently. There were 14 hedge funds in our database with CLS positions at the end of the second quarter. Our calculations also showed that CLS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Richard S. Pzena of Pzena Investment Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let’s take a peek at the latest hedge fund action regarding Celestica Inc. (NYSE:CLS).
Do Hedge Funds Think CLS Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the second quarter of 2021. On the other hand, there were a total of 15 hedge funds with a bullish position in CLS a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
The largest stake in Celestica Inc. (NYSE:CLS) was held by Pzena Investment Management, which reported holding $77.3 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $23.8 million position. Other investors bullish on the company included Nishkama Capital, D E Shaw, and Renaissance Technologies. In terms of the portfolio weights assigned to each position Nishkama Capital allocated the biggest weight to Celestica Inc. (NYSE:CLS), around 4.25% of its 13F portfolio. SG Capital Management is also relatively very bullish on the stock, designating 2.12 percent of its 13F equity portfolio to CLS.
Now, specific money managers were leading the bulls’ herd. Intrinsic Edge Capital, managed by Mark Coe, established the most outsized position in Celestica Inc. (NYSE:CLS). Intrinsic Edge Capital had $1.8 million invested in the company at the end of the quarter. Phil Frohlich’s Prescott Group Capital Management also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new CLS investors: Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, Ray Dalio’s Bridgewater Associates, and David Dattels’s NewGen Asset Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Celestica Inc. (NYSE:CLS) but similarly valued. These stocks are MediaAlpha, Inc. (NYSE:MAX), Sandstorm Gold Ltd. (NYSE:SAND), Altus Midstream Company (NASDAQ:ALTM), SOPHiA GENETICS SA (NASDAQ:SOPH), Veeco Instruments Inc. (NASDAQ:VECO), AdvanSix Inc. (NYSE:ASIX), and Community Healthcare Trust Inc (NYSE:CHCT). This group of stocks’ market valuations match CLS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MAX | 5 | 7354 | 0 |
| SAND | 15 | 93318 | -1 |
| ALTM | 7 | 6052 | 4 |
| SOPH | 6 | 176225 | 6 |
| VECO | 14 | 377131 | -1 |
| ASIX | 17 | 64787 | 1 |
| CHCT | 8 | 49312 | -4 |
| Average | 10.3 | 110597 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.3 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $166 million in CLS’s case. AdvanSix Inc. (NYSE:ASIX) is the most popular stock in this table. On the other hand MediaAlpha, Inc. (NYSE:MAX) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Celestica Inc. (NYSE:CLS) is more popular among hedge funds. Our overall hedge fund sentiment score for CLS is 90. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 29.6% in 2021 and managed to beat the market by 3.6 percentage points. Hedge funds were also right about betting on CLS as the stock returned 25.3% since the end of September (through 12/31) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Celestica Inc (NYSE:CLS)
Follow Celestica Inc (NYSE:CLS)
Suggested Articles:
- 15 Largest Chemical Companies in the World
- 10 Best Software Stocks to Buy According to Billionaire Paul Tudor Jones
- 30 Best Hotels in America in 2021
Disclosure: None. This article was originally published at Insider Monkey.
