We at Insider Monkey have gone over 821 13F filings that hedge funds and distinguished buyers are required to file by the SEC The 13F filings present the funds’ and buyers’ portfolio positions as of March 31st, close to the peak of the coronavirus market crash. On this article, we have a look at what these funds consider Evoqua Water Applied sciences Corp. (NYSE:AQUA) based mostly on that knowledge.
Is Evoqua Water Applied sciences Corp. (NYSE:AQUA) a sound funding proper now? Buyers who’re within the know have gotten hopeful. The variety of bullish hedge fund bets inched up by 7 in latest months. Our calculations additionally confirmed that AQUA is not among the many 30 most popular stocks among hedge funds (click on for Q1 rankings and see the video for a fast have a look at the highest 5 shares). Video: Watch our video in regards to the high 5 hottest hedge fund shares.
Hedge funds’ fame as shrewd buyers has been tarnished within the final decade as their hedged returns could not sustain with the unhedged returns of the market indices. Our analysis was in a position to establish upfront a choose group of hedge fund holdings that outperformed the S&P 500 ETFs by greater than 58 proportion factors since March 2017 (see the details here). We had been additionally in a position to establish upfront a choose group of hedge fund holdings that’ll considerably underperform the market. We’ve been monitoring and sharing the record of those shares since February 2017 they usually misplaced 36% by way of Might 18th. That is why we imagine hedge fund sentiment is a particularly helpful indicator that buyers ought to take note of.
Blair Levinsky of Waratah Capital Advisors
At Insider Monkey we depart no stone unturned when searching for the following nice funding thought. For instance, 2020’s unprecedented market circumstances present us with the very best variety of buying and selling alternatives in a decade. So we’re testing trades like this one in addition to this tiny cannabis play. We learn hedge fund investor letters and take heed to inventory pitches at hedge fund conferences. Our greatest name in 2020 was shorting the market when the S&P 500 was buying and selling at 3150 after realizing the coronavirus pandemic’s significance earlier than most buyers. Now we’ll take a gander on the newest hedge fund motion surrounding Evoqua Water Applied sciences Corp. (NYSE:AQUA).
How have hedgies been buying and selling Evoqua Water Applied sciences Corp. (NYSE:AQUA)?
Heading into the second quarter of 2020, a complete of 28 of the hedge funds tracked by Insider Monkey held lengthy positions on this inventory, a change of 33% from the earlier quarter. Then again, there have been a complete of 13 hedge funds with a bullish place in AQUA a 12 months in the past. With hedge funds’ positions present process their normal ebb and movement, there exists an “higher tier” of notable hedge fund managers who had been rising their holdings considerably (or already amassed massive positions).
The most important stake in Evoqua Water Applied sciences Corp. (NYSE:AQUA) was held by P2 Capital Companions, which reported holding $48.2 million price of inventory on the finish of September. It was adopted by Impax Asset Administration with a $23 million place. Different buyers bullish on the corporate included Renaissance Applied sciences, Citadel Funding Group, and Marshall Wace LLP. When it comes to the portfolio weights assigned to every place P2 Capital Partners allotted the most important weight to Evoqua Water Applied sciences Corp. (NYSE:AQUA), round 5.77% of its 13F portfolio. Pinz Capital can be comparatively very bullish on the inventory, setting apart 3.38 % of its 13F fairness portfolio to AQUA.
As mixture curiosity elevated, key hedge funds had been breaking floor themselves. DSAM Partners, managed by Man Shahar, assembled the most important place in Evoqua Water Applied sciences Corp. (NYSE:AQUA). DSAM Companions had $3.5 million invested within the firm on the finish of the quarter. Josh Donfeld and David Rogers’s Fort Hook Companions additionally made a $1.5 million funding within the inventory in the course of the quarter. The next funds had been additionally among the many new AQUA buyers: Matthew L Pinz’s Pinz Capital, Simon Sadler’s Segantii Capital, and Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors.
Let’s go over hedge fund exercise in different shares – not essentially in the identical trade as Evoqua Water Applied sciences Corp. (NYSE:AQUA) however equally valued. We’ll check out TowneBank (NASDAQ:TOWN), 4 Corners Property Belief, Inc. (NYSE:FCPT), Sogou Inc. (NYSE:SOGO), and Cavco Industries, Inc. (NASDAQ:CVCO). All of those shares’ market caps resemble AQUA’s market cap.
[table] Ticker, No of HFs with positions, Whole Worth of HF Positions (x1000), Change in HF Place TOWN,4,25151,-2 FCPT,14,53932,-1 SOGO,6,9617,-5 CVCO,20,122025,zero Common,11,52681,-2 [/table]
View table here in the event you expertise formatting points.
As you possibly can see these shares had a mean of 11 hedge funds with bullish positions and the typical quantity invested in these shares was $53 million. That determine was $125 million in AQUA’s case. Cavco Industries, Inc. (NASDAQ:CVCO) is the preferred inventory on this desk. Then again TowneBank (NASDAQ:TOWN) is the least fashionable one with solely Four bullish hedge fund positions. In comparison with these shares Evoqua Water Applied sciences Corp. (NYSE:AQUA) is extra fashionable amongst hedge funds. Our calculations confirmed that top 10 most popular stocks amongst hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 proportion factors. These shares returned 8.3% in 2020 by way of the top of Might however nonetheless managed to beat the market by 13.2 proportion factors. Hedge funds had been additionally proper about betting on AQUA because the inventory returned 67.8% thus far in Q2 (by way of the top of Might) and outperformed the market by a fair bigger margin. Hedge funds had been clearly proper about piling into this inventory relative to different shares with related market capitalizations.
Disclosure: None. This text was initially revealed at Insider Monkey.
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— to finance.yahoo.com