Were Hedge Funds Right About Flocking Into Carpenter Technology Corporation (CRS) ?

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Carpenter Technology Corporation (NYSE:CRS) was in 15 hedge funds’ portfolios at the end of the fourth quarter of 2018. CRS investors should pay attention to an increase in hedge fund interest of late. There were 14 hedge funds in our database with CRS positions at the end of the previous quarter. Our calculations also showed that CRS isn’t among the 30 most popular stocks among hedge funds.

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Joe Huber - Huber Capital Management

We’re going to take a glance at the latest hedge fund action regarding Carpenter Technology Corporation (NYSE:CRS).

What have hedge funds been doing with Carpenter Technology Corporation (NYSE:CRS)?

Heading into the first quarter of 2019, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 7% from the previous quarter. By comparison, 12 hedge funds held shares or bullish call options in CRS a year ago. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).


According to Insider Monkey’s hedge fund database, Chuck Royce’s Royce & Associates has the biggest position in Carpenter Technology Corporation (NYSE:CRS), worth close to $24.6 million, corresponding to 0.2% of its total 13F portfolio. Coming in second is Ken Fisher of Fisher Asset Management, with a $15.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish include Dmitry Balyasny’s Balyasny Asset Management, Joe Huber’s Huber Capital Management and David Harding’s Winton Capital Management.

Now, specific money managers were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, established the most outsized position in Carpenter Technology Corporation (NYSE:CRS). Balyasny Asset Management had $11.1 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $2.2 million position during the quarter. The other funds with brand new CRS positions are D. E. Shaw’s D E Shaw and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Carpenter Technology Corporation (NYSE:CRS) but similarly valued. These stocks are Hilltop Holdings Inc. (NYSE:HTH), LCI Industries (NYSE:LCII), Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), and Belden Inc. (NYSE:BDC). This group of stocks’ market caps match CRS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTH 14 103124 0
LCII 8 79865 -4
MDRX 18 159101 -2
BDC 15 40502 5
Average 13.75 95648 -0.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $88 million in CRS’s case. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is the most popular stock in this table. On the other hand LCI Industries (NYSE:LCII) is the least popular one with only 8 bullish hedge fund positions. Carpenter Technology Corporation (NYSE:CRS) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Hedge funds were also right about betting on CRS as the stock returned 40.3% and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.