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’s What Hedge Funds Think About Spartan Motors Inc (SPAR)

Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors’ favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the second quarter. The stats were even worse in recent years when most of the advances in the market were due to large gains by FAANG stocks. However, one bright side for individual investors was the strong performance of hedge funds’ top consensus picks. This year hedge funds’ top 20 stock picks outperformed the S&P 500 Index by 6.6 percentage points through May 30th. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone.

Is Spartan Motors Inc (NASDAQ:SPAR) ready to rally soon? Investors who are in the know are taking a bullish view. The number of long hedge fund bets inched up by 1 in recent months. Our calculations also showed that SPAR isn’t among the 30 most popular stocks among hedge funds.

In the financial world there are many indicators stock market investors have at their disposal to evaluate publicly traded companies. Some of the less utilized indicators are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the market by a solid margin (see the details here).

Roger Ibbotson Zebra Capital

We’re going to check out the latest hedge fund action regarding Spartan Motors Inc (NASDAQ:SPAR).

How have hedgies been trading Spartan Motors Inc (NASDAQ:SPAR)?

At Q1’s end, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from one quarter earlier. On the other hand, there were a total of 16 hedge funds with a bullish position in SPAR a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

SPAR_june2019

The largest stake in Spartan Motors Inc (NASDAQ:SPAR) was held by Royce & Associates, which reported holding $11.5 million worth of stock at the end of March. It was followed by D E Shaw with a $5.7 million position. Other investors bullish on the company included Renaissance Technologies, Prescott Group Capital Management, and GAMCO Investors.

Now, specific money managers have been driving this bullishness. Manatuck Hill Partners, managed by Mark Broach, assembled the most outsized position in Spartan Motors Inc (NASDAQ:SPAR). Manatuck Hill Partners had $1 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $0.4 million investment in the stock during the quarter. The other funds with brand new SPAR positions are Roger Ibbotson’s Zebra Capital Management and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks similar to Spartan Motors Inc (NASDAQ:SPAR). These stocks are Spark Energy, Inc. (NASDAQ:SPKE), Genco Shipping & Trading Limited (NYSE:GNK), Bel Fuse, Inc. (NASDAQ:BELFB), and Source Capital, Inc. (NYSE:SOR). This group of stocks’ market valuations match SPAR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPKE 11 15596 -1
GNK 12 171868 0
BELFB 8 23311 -1
SOR 2 6340 0
Average 8.25 54279 -0.5

View table here if you experience formatting issues.

As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $34 million in SPAR’s case. Genco Shipping & Trading Limited (NYSE:GNK) is the most popular stock in this table. On the other hand Source Capital, Inc. (NYSE:SOR) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Spartan Motors Inc (NASDAQ:SPAR) is more popular among hedge funds. 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. Hedge funds were also right about betting on SPAR as the stock returned 13.4% during the same period 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.

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.
Loading...