Should You Avoid American States Water Co (AWR)?

The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards American States Water Co (NYSE:AWR).

Is American States Water Co (NYSE:AWR) ready to rally soon? Money managers are becoming less hopeful. The number of long hedge fund positions retreated by 2 in recent months. 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 Greif, Inc. (NYSE:GEF), ABM Industries, Inc. (NYSE:ABM), and China Lodging Group, Ltd (ADR) (NASDAQ:HTHT) to gather more data points.

In the eyes of most traders, hedge funds are assumed to be unimportant, outdated financial vehicles of years past. While there are greater than 8000 funds with their doors open today, Our researchers hone in on the masters of this club, about 700 funds. It is estimated that this group of investors administer the lion’s share of the hedge fund industry’s total asset base, and by shadowing their best investments, Insider Monkey has brought to light many investment strategies that have historically outstripped Mr. Market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points a year for a decade in their back tests.

Keeping this in mind, let’s analyze the fresh action surrounding American States Water Co (NYSE:AWR).

How are hedge funds trading American States Water Co (NYSE:AWR)?

Heading into Q4, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a change of -29% from the previous quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Jim Simons’s Renaissance Technologies has the number one position in American States Water Co (NYSE:AWR), worth close to $39.9 million, accounting for 0.1% of its total 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which holds a $3.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Matthew Hulsizer’s PEAK6 Capital Management and Michael Platt and William Reeves’s BlueCrest Capital Mgmt.