Insider Monkey has processed numerous 13F deposits from successful hedge funds and value investors to create a comprehensive database of hedge fund holdings. The 13F documents show the positions of hedge funds and performing investors at the end of the second quarter. You can find articles about individual hedge fund transactions on many financial news websites. However, in this article, we’ll take a look at their collective moves over the past 6 years and analyze what Kirby Corporation’s smart money thinks (NYSE:KEX) on the basis of this data.
East Kirby Corporation (NYSE:KEX) will take off soon? Leading investors had a bearish outlook. The number of long bets on hedge funds has recently been reduced by 2. Kirby Corporation (NYSE:KEX) was in the portfolios of 21 hedge funds at the end of the second quarter of 2021. The all-time high for this statistic is 34. Our calculations have also shown that KEX is not among the 30 most popular stocks among hedge funds (click for Q2 ranking). There were 23 hedge funds in our database with KEX positions at the end of the first quarter.
So why do we pay attention to hedge fund sentiment before making investment decisions? Our research has shown that small cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 79 percentage points since March 2017 (see details here). We have been able to outperform passive index funds by tracking corporate and hedge fund insider movements, and we believe small investors can benefit greatly from reading hedge fund investor letters and records. 13F.
Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium mining is one of the fastest growing industries right now, so we’re looking at stock locations like this. emerging lithium stocks. We go through lists like the 10 best EV stocks to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. With all of that in mind, let’s take a look at the latest hedge fund action encompassing Kirby Corporation (NYSE:KEX).
Do hedge funds think KEX is a good stock to buy now?
As we approach the third quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey were holding long positions in this stock, a change of -9% from the first quarter of 2020. Below you can check out the evolution of coverage. fund sentiment towards KEX over the past 24 quarters. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.
The largest stake in Kirby Corporation (NYSE: KEX) was held by Capital of Diamond Hill, who said he held shares worth $ 162.5 million at the end of June. It was followed by Thunderbird Partners with a position of $ 120.2 million. Other optimistic investors for the company included Hound Partners, DE Shaw and Citadel Investment Group. In terms of portfolio weights assigned to each position Thunderbird Partners assigned the greatest weight to Kirby Corporation (NYSE: KEX), around 10.79% of its 13F portfolio. Hound Partners is also relatively very bullish on the stock, allocating 5.73% of its 13F equity portfolio to KEX.
Given that Kirby Corporation (NYSE: KEX) saw a decline in interest from smart money, it is easy to see that there were a few fund managers who completely reduced their positions at the end of the second trimester. Interestingly, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital cut the biggest investment of the 750 funds, followed by Insider Monkey, valued at nearly $ 22.3 million in shares, and Mark Coe’s Intrinsic Edge Capital was right behind the move, with the fund losing around $ 3.8 million of dollars. These transactions are important to note, as total hedge fund interest fell by 2 funds at the end of the second quarter.
Let’s also take a look at hedge fund activity in other stocks – not necessarily in the same industry as Kirby Corporation (NYSE: KEX) but of similar value. We’ll take a look at Brookfield Business Partners LP (NYSE:BBU), Installed Building Products Inc (NYSE:IBP), Camping World Holdings, Inc. (NYSE:CWH), Spectrum Brands Holdings, Inc. (NYSE:SPB), Shutterstock Inc (NYSE:SSTK), Vonage Holdings Corp. (NYSE:VG) and Steven Madden, Ltd. (NASDAQ:SHOOT). The market value of this group of shares corresponds to the market value of KEX.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position BBU, 4.24531.1 IBP, 12.55396, -9 CWH, 20.292507, -4 SPB, 35.578244, -2 SSTK, 18.214408.0 TB, 29.708094, -7 SHOO, 18.157045, -1 Medium, 19.4.290032, -3.1 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 19.4 hedge funds with bullish positions and the average amount invested in these stocks was $ 290 million. That figure was $ 584 million in the case of KEX. Spectrum Brands Holdings, Inc. (NYSE:SPB) is the most popular action in this table. On the other hand, Brookfield Business Partners LP (NYSE:BBU) is the least popular with only 4 bullish hedge fund positions. Kirby Corporation (NYSE: KEX) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for KEX is 48.9. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020 and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22 and again beat the market by 1.6 percentage points. Unfortunately, KEX was not as popular as these 5 stocks and the hedge funds that bet on KEX were disappointed as the stock returned -6.3% since the end of June (through 10/22) and under -performed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Monkey initiate.