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 ABB Ltd (ADR) (NYSE:ABB).
Is ABB Ltd (ADR) (NYSE:ABB) a healthy stock for your portfolio? Hedge funds are surely actually taking a pessimistic view. The number of bullish hedge fund investments was slashed by 1 in recent months. ABB was in 10 hedge funds’ portfolios at the end of September. There were 11 hedge funds in our database with ABB holdings at the end of June. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as ING Groep N.V. (ADR) (NYSE:ING), General Dynamics Corporation (NYSE:GD), and Dominion Resources, Inc. (NYSE:D) to gather more data points.
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.
Hedge fund activity in ABB Ltd (ADR) (NYSE:ABB)
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 9% dip from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ABB over the last 5 quarters, which peaked at the end of March but has slipped in each of the quarters since. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holds the most valuable position in ABB Ltd (ADR) (NYSE:ABB). Arrowstreet Capital has a $155 million position in the stock. On Arrowstreet Capital’s heels is Fisher Asset Management, led by Ken Fisher, which holds a $15.9 million position. Some other hedge funds and institutional investors that hold long positions include Kenneth Squire’s 13D Management, Ed Beddow and William Tichy’s Beddow Capital Management, and Robert B. Gillam’s McKinley 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-micro-cap stocks.