A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on CSX Corporation (NYSE:CSX).
CSX Corporation (NYSE:CSX) has seen an increase in hedge fund interest lately. CSX was in 43 hedge funds’ portfolios at the end of the third quarter of 2016. There were 41 hedge funds in our database with CSX positions at the end of the previous quarter. 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 Barrick Gold Corporation (USA) (NYSE:ABX), Tyson Foods, Inc. (NYSE:TSN), and AvalonBay Communities Inc (NYSE:AVB) to gather more data points.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to take a look at the recent action regarding CSX Corporation (NYSE:CSX).
Hedge fund activity in CSX Corporation (NYSE:CSX)
At Q3’s end, a total of 43 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Israel Englander’s Millennium Management has the number one position in CSX Corporation (NYSE:CSX), worth close to $105.9 million, comprising 0.2% of its total 13F portfolio. Coming in second is AQR Capital Management, led by Cliff Asness, holding a $97.9 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors with similar optimism encompass Paul Marshall and Ian Wace’s Marshall Wace LLP, and Alexander Mitchell’s Scopus Asset Management.
As aggregate interest increased, key hedge funds were breaking ground themselves. Tide Point Capital, managed by Christopher A. Winham, created the largest position in CSX Corporation (NYSE:CSX). Tide Point Capital had $44.2 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also made a $41.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Robert Bishop’s Impala Asset Management, Aaron Cowen’s Suvretta Capital Management, and Curtis Macnguyen’s Ivory Capital (Investment Mgmt).
Let’s also examine hedge fund activity in other stocks similar to CSX Corporation (NYSE:CSX). We will take a look at Barrick Gold Corporation (USA) (NYSE:ABX), Tyson Foods, Inc. (NYSE:TSN), AvalonBay Communities Inc (NYSE:AVB), and Pioneer Natural Resources (NYSE:PXD). This group of stocks’ market caps are similar to CSX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ABX | 45 | 1718683 | -8 |
| TSN | 35 | 1630953 | -5 |
| AVB | 16 | 511631 | -3 |
| PXD | 72 | 4119576 | -2 |
As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $1.99 billion. That figure was $735 million in CSX’s case. Pioneer Natural Resources (NYSE:PXD) is the most popular stock in this table. On the other hand AvalonBay Communities Inc (NYSE:AVB) is the least popular one with only 16 bullish hedge fund positions. CSX Corporation (NYSE:CSX) 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 PXD might be a better candidate to consider a long position.
