Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here is What Hedge Funds Think About MSA Safety Incorporated (MSA)

Is MSA Safety Incorporated (NYSE:MSA) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

MSA Safety Incorporated (NYSE:MSA) has experienced a decrease in hedge fund interest of late. Our calculations also showed that MSA isn’t among the 30 most popular stocks among hedge funds (view the video below).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

At the moment there are tons of tools market participants put to use to evaluate stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the top investment managers can outpace the S&P 500 by a healthy margin (see the details here).

MSA_oct2019

Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s take a peek at the new hedge fund action regarding MSA Safety Incorporated (NYSE:MSA).

What does smart money think about MSA Safety Incorporated (NYSE:MSA)?

At Q2’s end, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of -18% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MSA over the last 16 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).

Chuck Royce

Among these funds, AQR Capital Management held the most valuable stake in MSA Safety Incorporated (NYSE:MSA), which was worth $45.3 million at the end of the second quarter. On the second spot was Royce & Associates which amassed $12.2 million worth of shares. Moreover, GLG Partners, Renaissance Technologies, and Citadel Investment Group were also bullish on Mine Safety Appliances (NYSE:MSA), allocating a large percentage of their portfolios to this stock.

Judging by the fact that MSA Safety Incorporated (NYSE:MSA) has faced bearish sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their positions entirely by the end of the second quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the biggest investment of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $1.7 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also dropped its stock, about $1 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 3 funds by the end of the second quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MSA Safety Incorporated (NYSE:MSA) but similarly valued. We will take a look at MasTec, Inc. (NYSE:MTZ), Brunswick Corporation (NYSE:BC), Strategic Education, Inc. (NASDAQ:STRA), and Clean Harbors Inc (NYSE:CLH). This group of stocks’ market caps resemble MSA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MTZ 28 452832 0
BC 30 540469 3
STRA 13 208173 0
CLH 27 413470 0
Average 24.5 403736 0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 24.5 hedge funds with bullish positions and the average amount invested in these stocks was $404 million. That figure was $79 million in MSA’s case. Brunswick Corporation (NYSE:BC) is the most popular stock in this table. On the other hand Strategic Education, Inc. (NASDAQ:STRA) is the least popular one with only 13 bullish hedge fund positions. MSA Safety Incorporated (NYSE:MSA) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on MSA, though not to the same extent, as the stock returned 4% during the third quarter and outperformed the market.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.