We can judge whether Seacor Holdings, Inc. (NYSE:CKH) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market when we factor in known risk factors.
Seacor Holdings, Inc. (NYSE:CKH) was in 11 hedge funds’ portfolios at the end of the first quarter of 2019. CKH shareholders have witnessed a decrease in activity from the world’s largest hedge funds in recent months. There were 16 hedge funds in our database with CKH holdings at the end of the previous quarter. Our calculations also showed that ckh isn’t among the 30 most popular stocks among hedge funds.
Today there are numerous metrics investors use to evaluate stocks. A couple of the most innovative metrics are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the best money managers can trounce the broader indices by a solid margin (see the details here).
We’re going to take a peek at the key hedge fund action surrounding Seacor Holdings, Inc. (NYSE:CKH).
What does smart money think about Seacor Holdings, Inc. (NYSE:CKH)?
At Q1’s end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -31% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards CKH over the last 15 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Royce & Associates held the most valuable stake in Seacor Holdings, Inc. (NYSE:CKH), which was worth $60.2 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $49.7 million worth of shares. Moreover, GLG Partners, D E Shaw, and Two Sigma Advisors were also bullish on Seacor Holdings, Inc. (NYSE:CKH), allocating a large percentage of their portfolios to this stock.
Since Seacor Holdings, Inc. (NYSE:CKH) has faced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies that slashed their positions entirely last quarter. It’s worth mentioning that Noam Gottesman’s GLG Partners dropped the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $0.9 million in stock, and John Thiessen’s Vertex One Asset Management was right behind this move, as the fund sold off about $0.5 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 5 funds last quarter.
Let’s go over hedge fund activity in other stocks similar to Seacor Holdings, Inc. (NYSE:CKH). These stocks are Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH), Meta Financial Group Inc. (NASDAQ:CASH), Solaris Oilfield Infrastructure, Inc. (NYSE:SOI), and Cellectis SA (NASDAQ:CLLS). This group of stocks’ market values are closest to CKH’s market value.
|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 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $70 million. That figure was $123 million in CKH’s case. Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) is the most popular stock in this table. On the other hand Cellectis SA (NASDAQ:CLLS) is the least popular one with only 8 bullish hedge fund positions. Seacor Holdings, Inc. (NYSE:CKH) 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 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CKH, though not to the same extent, as the stock returned 5.4% during the same time frame and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.