Here is What Hedge Funds Think About Cincinnati Financial Corporation (CINF)
Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 10 percentage points over the last 12 months. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure since summer months, though some funds increased their exposure dramatically at the end of Q2 and the beginning of Q3. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Seeing as Cincinnati Financial Corporation (NASDAQ:CINF) has experienced falling interest from the aggregate hedge fund industry, it's easy to see that there is a sect of fund managers that slashed their positions entirely heading into Q3.