Is Huntington Ingalls Industries Inc (NYSE:HII) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Huntington Ingalls Industries Inc (NYSE:HII) investors should pay attention to an increase in support from the world’s most elite money managers in recent months. HII was in 32 hedge funds’ portfolios at the end of September, up by one from 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 Rite Aid Corporation (NYSE:RAD), Varian Medical Systems, Inc. (NYSE:VAR), and Quintiles Transnational Holdings Inc (NYSE:Q) to gather more data points.
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How are hedge funds trading Huntington Ingalls Industries Inc (NYSE:HII)?
Heading into the fourth quarter of 2016, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy 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, Cliff Asness’ AQR Capital Management has the biggest position in Huntington Ingalls Industries Inc (NYSE:HII), worth close to $245 million. The second largest stake is held by Renaissance Technologies, led by Jim Simons, holding a $103.9 million position. Some other professional money managers that are bullish include D. E. Shaw’s D E Shaw, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and John Overdeck and David Siegel’s Two Sigma Advisors.