What Hedge Funds Think About Newly-Listed Stocks ~ Vista Outdoor Inc (VSTO), Box Inc (BOX), Pacific DataVision, Inc. (PDVW)

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The latest round of 13F filings, whereby hedge funds and other investment firms with U.S-traded equity holdings totaling at least $100 million are required to disclose those holdings with the Securities and Exchange Commission, is complete. We gather and use this information to power our market-beating small-cap strategy in addition to penning reports on various aspects of overall hedge fund activity. In this article we’ll take a look at four companies which had their IPOs during the first quarter of 2015: Summit Materials Inc (NYSE:SUM), Vista Outdoor Inc (NYSE:VSTO), Box Inc (NYSE:BOX), and Pacific DataVision, Inc. (NASDAQ:PDVWand judge the early hedge fund sentiment towards these companies.

Vista Outdoor

First, a word about our small-cap strategy. We launched this strategy in August 2012 on the back of 13 years’ worth of research data that showed hedge funds’ top small-cap picks were far more successful on average than the rest of their stock picks. Since the official launch of our strategy we couldn’t be more pleased with the results and the returns it has delivered to subscribers: 144.4% returns over 32 months, more than doubling the returns of both the S&P 500 ETF (SPY) and Russell 2000 ETF (IWM) during that time. We’ve just released our latest quarterly newsletter which includes our top small-cap picks for the next three months.

Let’s move on to the newly-listed companies now, beginning with Summit Materials Inc (NYSE:SUM). Despite having its IPO relatively late in the first quarter (March 12), Summit Materials paced all newly-listed companies with 32 hedge funds in our database opening a position in it through March 31, with the positions valued at $263 million. Tops among them was Richard Barrera’s Roystone Capital Partners, which opened a 1.40 million share position in Summit Materials Inc (NYSE:SUM) valued at $31.07 million. Israel Englander’s Millennium Management and Lee Ainslie’s Maverick Capital are among the other funds to open positions. Shares of Summit Materials Inc (NYSE:SUM), which deals in construction materials in the United States and Western Canada, have gained a healthy 34% since its IPO.

Shares of Vista Outdoor Inc (NYSE:VSTO) are now held by 20 funds in our database, with the total value of their holdings equaling $655 million as of March 31, more than double that of Summit Materials and the second-highest of any newly-listed stock. The consumer goods company, which had its IPO in late January, sells hunting and outdoor sporting equipment. Vista Outdoor Inc (NYSE:VSTO) proved particularly attractive to Jean-Marie Eveillard‘s First Eagle Investment Management, which had snapped up 6.93 million shares by early March, giving it a 10.85% stake in the company. That position was bumped up to 7.30 million shares valued at $312.56 million by the end of March. David Cohen and Harold Levy’s Iridian Asset Management has also opened a large position in Vista Outdoor, whose shares have enjoyed an even healthier rise of 36% since its IPO.

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