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Is Harris Corporation (HRS) Going to Burn These Hedge Funds?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Harris Corporation (NYSE:HRS).

Is Harris Corporation (NYSE:HRS) going to take off soon? The smart money is buying. The number of bullish hedge fund positions advanced by 2 recently. Our calculations also showed that HRS isn’t among the 30 most popular stocks among hedge funds.

In the financial world there are a lot of tools stock market investors can use to analyze stocks. A duo of the less utilized tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the best investment managers can trounce their index-focused peers by a healthy amount (see the details here).

MILLENNIUM MANAGEMENT

Let’s check out the key hedge fund action surrounding Harris Corporation (NYSE:HRS).

Hedge fund activity in Harris Corporation (NYSE:HRS)

At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards HRS over the last 13 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

HRS_dec2018

More specifically, Arrowstreet Capital was the largest shareholder of Harris Corporation (NYSE:HRS), with a stake worth $76.1 million reported as of the end of September. Trailing Arrowstreet Capital was Millennium Management, which amassed a stake valued at $73.1 million. GAMCO Investors, AQR Capital Management, and Renaissance Technologies were also very fond of the stock, giving the stock large weights in their portfolios.

Now, some big names were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, established the most valuable position in Harris Corporation (NYSE:HRS). Balyasny Asset Management had $4.2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $1.4 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Paul Tudor Jones’s Tudor Investment Corp, and Matthew Tewksbury’s Stevens Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Harris Corporation (NYSE:HRS) but similarly valued. These stocks are Marathon Oil Corporation (NYSE:MRO), Verisk Analytics, Inc. (NASDAQ:VRSK), DTE Energy Company (NYSE:DTE), and Tenaris S.A. (NYSE:TS). All of these stocks’ market caps are similar to HRS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MRO 39 1584494 1
VRSK 23 902227 -5
DTE 25 706241 5
TS 18 686842 -2
Average 26.25 969951 -0.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $970 million. That figure was $531 million in HRS’s case. Marathon Oil Corporation (NYSE:MRO) is the most popular stock in this table. On the other hand Tenaris S.A. (NYSE:TS) is the least popular one with only 18 bullish hedge fund positions. Harris Corporation (NYSE:HRS) 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 MRO might be a better candidate to consider a long position.

Disclosure: None. This article was originally published at Insider Monkey.

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