How Cenveo, Inc. (CVO) Stacks Up Against Its Peers

At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.

Cenveo, Inc. (NYSE:CVO) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of the third quarter of 2016, same as at the end of the second quarter. At the end of this article we will also compare CVO to other stocks including CPI Aerostructures, Inc. (NYSEMKT:CVU), LRAD Corp (NASDAQ:LRAD), and Ocera Therapeutics Inc (NASDAQ:OCRX) to get a better sense of its popularity.

Follow Cenveo Inc (NYSE:CVO)

We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.

Tom Mc Nemar/

Tom Mc Nemar/

What does the smart money think about Cenveo, Inc. (NYSE:CVO)?

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the previous quarter. Below, you can check out the change in hedge fund ownership of CVO over the last 5 quarters, which is down by 33% during that time. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).


According to Insider Monkey’s hedge fund database, Wallace Capital Management, led by Scott Wallace, holds the number one position in Cenveo, Inc. (NYSE:CVO). Wallace Capital Management has a $2.1 million position in the stock. The second largest stake is held by Gruss Asset Management, led by Howard Guberman, which holds a $0.9 million position. Remaining peers that are bullish comprise Renaissance Technologies, one of the largest hedge funds in the world, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, and David E. Shaw’s D E Shaw. 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-micro-cap stocks.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cenveo, Inc. (NYSE:CVO) but similarly valued. We will take a look at CPI Aerostructures, Inc. (NYSEMKT:CVU), LRAD Corp (NASDAQ:LRAD), Ocera Therapeutics Inc (NASDAQ:OCRX), and Trilogy Metals Inc (NYSEMKT:TMQ). All of these stocks’ market caps resemble CVO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CVU 3 19528 -1
LRAD 5 8058 5
OCRX 9 15135 -1
TMQ 5 12990 5

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $4 million in CVO’s case. Ocera Therapeutics Inc (NASDAQ:OCRX) is the most popular stock in this table. On the other hand CPI Aerostructures, Inc. (NYSEMKT:CVU) is the least popular one with only 3 bullish hedge fund positions. Cenveo, Inc. (NYSE:CVO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard OCRX might be a better candidate to consider taking a long position in.

Disclosure: None