8 Large Cap Metal Fabricators Hedge Funds Love

by: Insider Monkey

Metal Fabrications stocks are likely to fluctuate with the price movement of raw materials, such as crude oil and metals. Metal Fabrications sub-industry consists of companies from different sectors, such as Energy, Capital Goods, and Consumer Goods. These companies usually have large exposures to the eurozone and the global economy. We are actually bullish about the 2012 growth and think the downside is limited for these stocks. Here we compiled a list of top 8 large-cap metal fabrication stocks that several hedge funds are bullish about.



No. of hedge funds

National-Oilwell, Inc.



Baker Hughes Inc.



Parker-Hannifin Corp



Alcoa Inc.



Precision Castparts Corp






Cameron International Corp



FMC Technologies, Inc.



National-Oilwell, Inc. (NYSE:NOV): National-Oilwell provides equipments and components used in the oil and gas industry. The company has a market cap of more than $30 billion. NOV dropped to its 52-week low in early October but managed to recover after then. The stock gained 2.3% in 2011, which is almost equal to the SPY’s return. NOV was in more hedge fund’s portfolios -- 38 -- than any other metal fabrication stock in the third quarter. Ken Fisher’s Fisher Asset Management had the most shares of NOV among the funds we track, with more than 7 million shares as of the end of September (see billionaire Ken Fisher’s top stock picks).

Baker Hughes Inc. (BHI): Baker Hughes is also engaged in the oilfield industry. The company mainly provides systems and technologies to downstream companies. Baker Hughes has a market cap of $22 billion and lost 14% in 2011. The stock reached $80 in its peak in late July, and then fell to around $45 in October. Thirty-six hedge funds invested in the stock during the third quarter. Jason Capello’s Merchants' Gate Capital took the largest chunk, with more than 4 million shares of BHI, after the 26% increase in its position.

Parker-Hannifin Corp (NYSE:PH): Parker-Hannifin specializes in motion and control technologies and systems. The company has a market cap of nearly $12 billion. PH tumbled after August and lost 10% last year. Among the 28 hedge funds that had PH in their portfolios at the end of the third quarter, Ric Dillon’s Diamond Hill Capital had the most. The firm increased its position by 6% during Q3 and had 1.76 million shares at the end of September.

Alcoa Inc. (NYSE:AA): Alcoa is focused on aluminum, fabricated aluminum, and alumina combined products. The company has a market cap of $10 billion. Alcoa was in a downturn throughout 2011 and lost a whopping 43%. Now the stock is still hovering around its 2-year low. Twenty-five hedge funds might not be happy as they had positions in Alcoa at the end of the third quarter. John A. Levin’s Levin Capital Strategies increased its position by 23% and had 2.65 million shares of Alcoa in the third quarter.

Precision Castparts Corp (NYSE:PCP) is a complex metal components and products provider. It has a $24 billion market cap and had a strong performance, returning 18% in 2011. There were 22 hedge funds invested in PCP at the end of September. John Brennan’s Sirios Capital Management had the most – 522,000 shares – after the firm boosted its position by 87% during Q3.

AMTEK, Inc. (NYSE:AME): AME is a provider of electronic instruments and electromechanical devices worldwide. The stock has a market cap of about $7 billion. AME plunged in August but still managed to beat the SPY in terms of return, gaining 8% in 2011. Twenty hedge funds had AME in their portfolios at the end of September. Robert Joseph Caruso’s Select Equity Group boosted its position by 53% and held more than 4 million shares of AME at the end of Q3.

Cameron International Corp (NYSE:CAM): Cameron mainly provides equipment products, systems and services to oil and gas industries. The company has a market cap of more than $12 billion and had a mix path recently, losing 3% in 2011. Ken Griffin’s Citadel Investment Group had more shares of Cameron Int'l than any other hedge funds, with more than 2 million shares. That figure is after the firm boosted its position by whopping 32% in the third quarter 2011 (see billionaire Ken Griffin’s top stock picks).

FMC Technologies, Inc. (NYSE:FTI): The company primarily provides technology solutions and systems to the energy industry. It has a $12+ billion market cap. The stock slid to its 52-week low in October and rallied after that, returning 18% last year. David Stemerman’s Conatus Capital Management cut its position by 39% and retained 1.38 million shares as of the end of September. Ken Griffin, Anthony Giammalva, and Steven Cohen initiated new positions in FTI during the third quarter last year (see Steven Cohen’s favorite stocks).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.