As aggregate interest increased, key money managers were leading the bulls’ herd. Point72 Asset Management, managed by Steve Cohen, assembled the biggest position in AK Steel Holding Corporation (NYSE:AKS). Point72 Asset Management had $5.5 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $4.9 million position during the quarter. The only other fund with a brand new AKS position is Mike Vranos’s Ellington.
Let’s go over hedge fund activity in other stocks similar to AK Steel Holding Corporation (NYSE:AKS). These stocks are Zealand Pharma A/S (NASDAQ:ZEAL), Tutor Perini Corporation (NYSE:TPC), United Financial Bancorp, Inc. (NASDAQ:UBNK), and Capstead Mortgage Corporation (NYSE:CMO). All of these stocks’ market caps are similar to AKS’s market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ZEAL,2,21766,0 TPC,6,8759,-6 UBNK,9,70766,1 CMO,9,26655,1 Average,6.5,31987,-1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $26 million in AKS’s case. United Financial Bancorp, Inc. (NASDAQ:UBNK) is the most popular stock in this table. On the other hand Zealand Pharma A/S (NASDAQ:ZEAL) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks AK Steel Holding Corporation (NYSE:AKS) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately AKS wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on AKS were disappointed as the stock returned -4.2% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market in Q3.
Disclosure: None. This article was originally published at Insider Monkey.