Winnebago Industries, Inc. (WGO)’s Shares Rally, But Is The Hype Deserved?

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How are hedge funds trading Winnebago Industries, Inc. (NYSE:WGO)?

At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish in this stock, a drop of 24% from the end of the fourth quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings considerably.

When looking at the hedgies followed by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the largest position in Winnebago Industries, Inc. (NYSE:WGO). Royce & Associates has a $38.9 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Tontine Asset Management, managed by Jeffrey Gendell, which held a $14.2 million position; 2.2% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish consist of Steve Pei’s Gratia Capital, Geoffrey Raynor’s Q Investments (Specter Holdings), and George McCabe’s Portolan Capital Management.

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Due to the fact that Winnebago Industries, Inc. (NYSE:WGO) has faced a decline in interest from hedge fund managers, it’s easy to see that there is a section of money managers that slashed their positions entirely heading into the second quarter. Interestingly, David Keidan’s Buckingham Capital Management said goodbye to the biggest stake of the “upper crust” of funds followed by Insider Monkey, comprising about $10.1 million in stock, while Doug Gordon, Jon Hilsabeck and Don Jabro of Shellback Capital were right behind this move, as the fund managers cut about $9.1 million worth of stock from their portfolio. These transactions are interesting, as total hedge fund interest fell by four funds heading into the second quarter.

Despite the increase in its share price, hedge fund managers have reduced positions in Winnebago Industries, indicating lower sentiment, and we see some unfavorable developments in its sales projections. We would not recommend buying this stock at its current levels.

Disclosure: None

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