Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
In this article, we will take a look at Oshkosh Corp (NYSE:OSK), which registered an increase in popularity among smart money investors tracked by Insider Monkey. During the third quarter, the number of investors long the stock rose by 11. At the end of this article we will also compare OSK to other stocks including Lancaster Colony Corp. (NASDAQ:LANC), National Instruments Corp (NASDAQ:NATI), and PrivateBancorp Inc (NASDAQ:PVTB) to get a better sense of its popularity.
Follow Oshkosh Corp (NYSE:OSK)
Follow Oshkosh Corp (NYSE:OSK)
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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Now, let’s review the fresh action regarding Oshkosh Corp (NYSE:OSK).
How are hedge funds trading Oshkosh Corp (NYSE:OSK)?
Heading into the fourth quarter of 2016, 27 funds tracked by Insider Monkey held long positions in Oshkosh Corp, which represents an increase of 69% from the end of the second quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Cliff Asness’ AQR Capital Management holds the biggest position in Oshkosh Corp (NYSE:OSK). AQR Capital Management has a $52.8 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Israel Englander‘s Millennium Management, with a $52.4 million position; 0.1% of its 13F portfolio is allocated to the company.
As industrywide interest jumped, specific money managers have jumped into Oshkosh Corp (NYSE:OSK) headfirst. Anchor Bolt Capital, managed by Robert Polak, established the biggest position in Oshkosh Corp (NYSE:OSK). Anchor Bolt Capital had $24.9 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also made a $22.7 million investment in the stock during the third quarter. The following funds were also among the new OSK investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Peter Muller’s PDT Partners, and Gregg Moskowitz’s Interval Partners.
Let’s also examine hedge fund activity in other stocks similar to Oshkosh Corp (NYSE:OSK). These stocks are Lancaster Colony Corp. (NASDAQ:LANC), National Instruments Corp (NASDAQ:NATI), PrivateBancorp Inc (NASDAQ:PVTB), and ViaSat, Inc. (NASDAQ:VSAT). All of these stocks’ market caps are similar to OSK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LANC | 14 | 253505 | 0 |
| NATI | 24 | 372551 | 2 |
| PVTB | 23 | 551096 | -3 |
| VSAT | 21 | 1875704 | 6 |
As you can see these stocks had an average of 21 investors with long positions and the average amount invested in these stocks was $763 million. That figure was $262 million in OSK’s case. National Instruments Corp (NASDAQ:NATI) is the most popular stock in this table, while Lancaster Colony Corp. (NASDAQ:LANC) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Oshkosh Corp (NYSE:OSK) 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.
