Is Oshkosh Corporation (NYSE:OSK) undervalued? Money managers are betting on the stock. The number of bullish hedge fund positions moved up by 5 lately.
In the eyes of most traders, hedge funds are viewed as underperforming, old investment vehicles of years past. While there are more than 8000 funds trading at present, we at Insider Monkey choose to focus on the bigwigs of this group, close to 450 funds. It is widely believed that this group controls the lion’s share of the hedge fund industry’s total capital, and by keeping an eye on their best investments, we have unearthed a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).
Equally as integral, positive insider trading sentiment is a second way to parse down the world of equities. Obviously, there are a variety of incentives for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if investors understand where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the key action surrounding Oshkosh Corporation (NYSE:OSK).
How are hedge funds trading Oshkosh Corporation (NYSE:OSK)?
In preparation for this year, a total of 20 of the hedge funds we track held long positions in this stock, a change of 33% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.
When looking at the hedgies we track, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the biggest position in Oshkosh Corporation (NYSE:OSK), worth close to $83 million, comprising 0.4% of its total 13F portfolio. Coming in second is Third Avenue Management, managed by Martin Whitman, which held a $62 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.
Consequently, key money managers were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most valuable position in Oshkosh Corporation (NYSE:OSK). Arrowstreet Capital had 83 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $17 million investment in the stock during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Glenn Russell Dubin’s Highbridge Capital Management, and Israel Englander’s Millennium Management.
What do corporate executives and insiders think about Oshkosh Corporation (NYSE:OSK)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last 180-day time period, Oshkosh Corporation (NYSE:OSK) has experienced 1 unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the returns exhibited by Insider Monkey’s tactics, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Oshkosh Corporation (NYSE:OSK) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.