The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Federal Signal Corporation (NYSE:FSS).
At the end of September, 17 funds tracked by Insider Monkey held long positions in Federal Signal Corporation (NYSE:FSS). FSS investors should be aware of a decrease in hedge fund interest last quarter. There had been 19 hedge funds in our database with FSS holdings at the end of the previous quarter. At the end of this article we will also compare FSS to other stocks, including Hibbett Sports, Inc. (NASDAQ:HIBB), ICF International Inc (NASDAQ:ICFI), and Brookline Bancorp, Inc. (NASDAQ:BRKL) 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.
Now, let’s analyze the recent action encompassing Federal Signal Corporation (NYSE:FSS).
How have hedgies been trading Federal Signal Corporation (NYSE:FSS)?
A total of 17 of the hedge funds tracked by Insider Monkey were bullish on Federal Signal Corporation (NYSE:FSS) at the end of the third quarter, down by 11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards FSS over the last five quarters. So, let’s see 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, Royce & Associates, led by Chuck Royce, holds the largest position in Federal Signal Corporation (NYSE:FSS). Royce & Associates has a $39.7 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Mario Gabelli’s GAMCO Investors, with a $12.4 million position; 0.1% of its 13F portfolio is allocated to the company. Other professional money managers that are bullish encompass Robert B. Gillam’s McKinley Capital Management, David E. Shaw’s D E Shaw and Cliff Asness’ AQR 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.