Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards PACCAR Inc (NASDAQ:PCAR).
PACCAR Inc (NASDAQ:PCAR) has seen an increase in hedge fund sentiment in recent months. PCAR was in 34 hedge funds’ portfolios at the end of September. There were 27 hedge funds in our database with PCAR holdings at the end of the previous quarter. At the end of this article we will also compare PCAR to other stocks including Western Digital Corp. (NASDAQ:WDC), Twitter Inc (NYSE:TWTR), and Boston Properties, Inc. (NYSE:BXP) to get a better sense of its popularity.
At the moment there are several metrics shareholders put to use to grade publicly traded companies. Two of the most underrated metrics are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the best picks of the top fund managers can trounce the broader indices by a healthy amount (see the details here).
Now, we’re going to take a peek at the recent action regarding PACCAR Inc (NASDAQ:PCAR).
How have hedgies been trading PACCAR Inc (NASDAQ:PCAR)?
At the end of the third quarter, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of 26% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Anchor Bolt Capital, managed by Robert Polak, holds the largest position in PACCAR Inc (NASDAQ:PCAR). Anchor Bolt Capital has a $61.8 million position in the stock, comprising 2.1% of its 13F portfolio. Coming in second is Legg Mason Capital Management, led by Bill Miller, holding a $58.3 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism include Joel Greenblatt’s Gotham Asset Management, Mark Wolfson and Jamie Alexander’s Jasper Ridge Partners and Israel Englander’s Millennium Management.