Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. In this article we are going to take a look at smart money sentiment towards CF Industries Holdings, Inc. (NYSE:CF).
CF Industries Holdings, Inc. (NYSE:CF) shareholders have witnessed an increase in hedge fund interest recently. At the end of this article we will also compare CF to other stocks including Discovery Communications Inc. (NASDAQ:DISCK), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), and Marathon Oil Corporation (NYSE:MRO) to get a better sense of its popularity.
Follow Cf Industries Holdings Inc. (NYSE:CF)
Follow Cf Industries Holdings Inc. (NYSE:CF)
In the eyes of most traders, hedge funds are assumed to be worthless, old financial tools of the past. While there are greater than 8,000 funds with their doors open at present, We hone in on the elite of this group, approximately 700 funds. These investment experts handle bulk of the hedge fund industry’s total asset base, and by paying attention to their highest performing picks, Insider Monkey has spotted many investment strategies that have historically surpassed the broader indices. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Now, let’s take a peek at the new action regarding CF Industries Holdings, Inc. (NYSE:CF).
What does the smart money think about CF Industries Holdings, Inc. (NYSE:CF)?
Heading into Q4, a total of 50 of the hedge funds tracked by Insider Monkey were long this stock, a change of 6% from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, D E Shaw holds the most valuable position in CF Industries Holdings, Inc. (NYSE:CF). D E Shaw has a $517.3 million position in the stock, comprising 0.8% of its 13F portfolio. The second most bullish fund manager is Passport Capital, led by John Burbank, holding a $279.3 million position; 5% of its 13F portfolio is allocated to the company. Other members of the smart money that hold long positions contain John Burbank’s Passport Capital, Ken Griffin’s Citadel Investment Group and John Armitage’s Egerton Capital Limited.
As one would reasonably expect, some big names were breaking ground themselves. Hayman Advisors, managed by Kyle Bass, assembled the most valuable position in CF Industries Holdings, Inc. (NYSE:CF). Hayman Advisors had $20.8 million invested in the company at the end of the quarter. Matthew Barrett’s Glendon Capital Management also initiated a $17 million position during the quarter. The following funds were also among the new CF investors: Jorge Paulo Lemann’s 3G Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Phill Gross and Robert Atchinson’s Adage Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as CF Industries Holdings, Inc. (NYSE:CF) but similarly valued. We will take a look at Discovery Communications Inc. (NASDAQ:DISCK), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), Marathon Oil Corporation (NYSE:MRO), and Xerox Corporation (NYSE:XRX). All of these stocks’ market caps match CF’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DISCK | 26 | 371588 | 1 |
| ULTA | 30 | 1878474 | -2 |
| MRO | 34 | 429246 | 1 |
| XRX | 33 | 547895 | 3 |
As you can see these stocks had an average of 30.75 hedge funds with bullish positions and the average amount invested in these stocks was $807 million. That figure was $1908 million in CF’s case. Marathon Oil Corporation (NYSE:MRO) is the most popular stock in this table. On the other hand Discovery Communications Inc. (NASDAQ:DISCK) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks CF Industries Holdings, Inc. (NYSE:CF) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
