Is Globe Specialty Metals, Inc. (GSM) A Good Stock To Buy?

At Insider Monkey we follow around 730 of the best-performing investors and even though many of them lost money in the last several months, the history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable for us to imitate their activity. Of course, even the best money managers can sometimes get it wrong, but following some of their picks gives us a better chance to outperform the crowd than picking a random stock and this is where our research comes in.

Globe Specialty Metals, Inc. (NASDAQ:GSM) was in 23 hedge funds’ portfolios at the end of September. GSM investors should pay attention to a decrease in support from the world’s most elite money managers of late. There were 27 hedge funds in our database with GSM positions at the end of the previous quarter. At the end of this article we will also compare GSM to other stocks including Astronics Corporation (NASDAQ:ATRO), Advantage Oil & Gas Ltd (USA) (NYSE:AAV), and TPG Specialty Lending Inc (NYSE:TSLX) to get a better sense of its popularity.

Now, let’s view the new action encompassing Globe Specialty Metals, Inc. (NASDAQ:GSM).

What does the smart money think about Globe Specialty Metals, Inc. (NASDAQ:GSM)?

At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of -15% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Blue Harbour Group, managed by Clifton S. Robbins, holds the most valuable position in Globe Specialty Metals, Inc. (NASDAQ:GSM). Blue Harbour Group has a $84.9 million position in the stock, comprising 2.6% of its 13F portfolio. The second largest stake is held by Adage Capital Management, led by Phill Gross and Robert Atchinson, holding a $28 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism comprise Jay Petschek and Steven Major’s Corsair Capital Management, Israel Englander’s Millennium Management and Peter Schliemann’s Rutabaga Capital Management.