Do you think it's time to invest in European companies? If so, here are some ideas to get you started.
We ran a screen on European companies trading on the US exchanges, for those seeing the most significant net institutional purchases over the current quarter. Institutional investors, such as hedge fund managers and mutual fund managers, are generally considered "smart money" investors because of their experience and access to sophisticated research.
We screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.
List sorted by net institutional purchases as a percent of share float.
1. Capital Product Partners L.P. (CPLP): Provides seaborne transportation of refined oil products and chemicals. Market cap at $477.03M, most recent closing price at $6.47. Net institutional purchases in the current quarter at 2.7M shares, which represents about 8.18% of the company's float of 33.00M shares. As of September 29th, 2012, the top 2 holders of the stock are Kayne Anderson Capital Advisors (65%), and Cushing MLP Asset Management (19%). Country: Greece
2. InterXion Holding NV (INXN): Provides carrier-neutral colocation data center services in Europe. Market cap at $1.5B, most recent closing price at $22.48. Net institutional purchases in the current quarter at 3.2M shares, which represents about 8% of the company's float of 39.98M shares. As of September 29th, 2012, the top 2 holders of the stock are D.E. Shaw (2.9%) and Thornburg Investment Management (2.9%). Country: The Netherlands
3. NXP Semiconductors NV (NXPI): Provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas. Market cap at $6.34B, most recent closing price at $25.39. Net institutional purchases in the current quarter at 6.8M shares, which represents about 9.41% of the company's float of 72.30M shares. As of September 30th, 2012, the top 2 holders of the stock are Kohlberg Kravis Roberts (16%), and FMR, LLC (13.23%). Country: The Netherlands
*Institutional data sourced from Fidelity, all other data sourced from Finviz.