- Were Hedge Funds Right About Zai Lab Limited (ZLAB)?
Feb 6, 2022
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the third quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Zai Lab Limited (NASDAQ:ZLAB) based on that data and determine whether they were really smart about the stock.
Zai Lab Limited (NASDAQ:ZLAB) shares haven't seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 36 hedge funds' portfolios at the end of September. Our calculations also showed that ZLAB isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), and Gentex Corporation (NASDAQ:GNTX) to gather more data points.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let's take a glance at the fresh hedge fund action regarding Zai Lab Limited (NASDAQ:ZLAB). Kris Jenner - Rock Springs Capital
Kris Jenner of Rock Springs Capital Management
Do Hedge Funds Think ZLAB Is A Good Stock To Buy Now?
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At the end of the third quarter, a total of 36 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter of 2021. By comparison, 28 hedge funds held shares or bullish call options in ZLAB a year ago. With hedgies' capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
The largest stake in Zai Lab Limited (NASDAQ:ZLAB) was held by Viking Global, which reported holding $309.1 million worth of stock at the end of September. It was followed by Rock Springs Capital Management with a $113.6 million position. Other investors bullish on the company included Segantii Capital, Hudson Bay Capital Management, and Atika Capital. In terms of the portfolio weights assigned to each position Indus Capital allocated the biggest weight to Zai Lab Limited (NASDAQ:ZLAB), around 3.78% of its 13F portfolio. Segantii Capital is also relatively very bullish on the stock, earmarking 2.41 percent of its 13F equity portfolio to ZLAB.
Judging by the fact that Zai Lab Limited (NASDAQ:ZLAB) has experienced a decline in interest from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers who were dropping their positions entirely in the third quarter. At the top of the heap, Richard Driehaus's Driehaus Capital dropped the largest investment of the 750 funds watched by Insider Monkey, comprising about $44.3 million in stock, and Ting Jia's Octagon Capital Advisors was right behind this move, as the fund said goodbye to about $19.4 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Zai Lab Limited (NASDAQ:ZLAB) but similarly valued. We will take a look at FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), Gentex Corporation (NASDAQ:GNTX), AptarGroup, Inc. (NYSE:ATR), Cosan S.A. (NYSE:CSAN), Rexnord Corp (NYSE:RXN), and TuSimple Holdings Inc. (NASDAQ:TSP). This group of stocks' market caps resemble ZLAB's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FSV,14,286751,1 WEX,19,513228,-1 GNTX,27,511079,-7 ATR,27,344498,0 CSAN,5,110211,0 RXN,30,840383,1 TSP,12,884094,12 Average,19.1,498606,0.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.1 hedge funds with bullish positions and the average amount invested in these stocks was $499 million. That figure was $861 million in ZLAB's case. Rexnord Corp (NYSE:RXN) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Zai Lab Limited (NASDAQ:ZLAB) is more popular among hedge funds. Our overall hedge fund sentiment score for ZLAB is 85. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately, ZLAB wasn't nearly as popular as these 5 stocks and hedge funds that were betting on ZLAB were disappointed as the stock returned -52.9% since the end of the third quarter (through 1/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as all of these stocks already outperformed the market since 2019.
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- Do Hedge Funds Love Ciena Corporation (CIEN)?
Dec 15, 2021
As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds' thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Ciena Corporation (NYSE:CIEN).
Ciena Corporation (NYSE:CIEN) has seen a decrease in enthusiasm from smart money lately. Ciena Corporation (NYSE:CIEN) was in 28 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 36. Our calculations also showed that CIEN isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we're going to view the latest hedge fund action encompassing Ciena Corporation (NYSE:CIEN).
Kerr Neilson of Platinum Asset Management
Do Hedge Funds Think CIEN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the previous quarter. On the other hand, there were a total of 29 hedge funds with a bullish position in CIEN a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
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More specifically, Alyeska Investment Group was the largest shareholder of Ciena Corporation (NYSE:CIEN), with a stake worth $81.2 million reported as of the end of September. Trailing Alyeska Investment Group was Rima Senvest Management, which amassed a stake valued at $70.3 million. Platinum Asset Management, D E Shaw, and Woodline Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Boardman Bay Capital Management allocated the biggest weight to Ciena Corporation (NYSE:CIEN), around 6.14% of its 13F portfolio. Breakline Capital is also relatively very bullish on the stock, designating 2.79 percent of its 13F equity portfolio to CIEN.
Judging by the fact that Ciena Corporation (NYSE:CIEN) has witnessed a decline in interest from the smart money, logic holds that there was a specific group of funds who sold off their positions entirely heading into Q4. At the top of the heap, Brandon Haley's Holocene Advisors sold off the largest position of the 750 funds followed by Insider Monkey, valued at about $58.5 million in stock, and Richard SchimeláandáLawrence Sapanski's Cinctive Capital Management was right behind this move, as the fund dumped about $4.4 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds heading into Q4.
Let's go over hedge fund activity in other stocks similar to Ciena Corporation (NYSE:CIEN). We will take a look at Zai Lab Limited (NASDAQ:ZLAB), FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), Gentex Corporation (NASDAQ:GNTX), AptarGroup, Inc. (NYSE:ATR), Cosan S.A. (NYSE:CSAN), and Rexnord Corp (NYSE:RXN). This group of stocks' market values resemble CIEN's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ZLAB,36,860989,0 FSV,14,286751,1 WEX,19,513228,-1 GNTX,27,511079,-7 ATR,27,344498,0 CSAN,5,110211,0 RXN,30,840383,1 Average,22.6,495306,-0.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.6 hedge funds with bullish positions and the average amount invested in these stocks was $495 million. That figure was $387 million in CIEN's case. Zai Lab Limited (NASDAQ:ZLAB) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. Ciena Corporation (NYSE:CIEN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CIEN is 64.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on CIEN as the stock returned 40.1% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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- Hedge Funds Are Getting Out Of Gentex Corporation (GNTX)
Dec 11, 2021
We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do (like Melvin Capital's recent GameStop losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Gentex Corporation (NASDAQ:GNTX).
Gentex Corporation (NASDAQ:GNTX) has seen a decrease in activity from the world's largest hedge funds of late. Gentex Corporation (NASDAQ:GNTX) was in 27 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 40. There were 34 hedge funds in our database with GNTX positions at the end of the second quarter. Our calculations also showed that GNTX isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we're going to view the latest hedge fund action regarding Gentex Corporation (NASDAQ:GNTX).
Peter Algert of Algert Global
Do Hedge Funds Think GNTX Is A Good Stock To Buy Now?
At third quarter's end, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of -21% from the second quarter of 2021. By comparison, 40 hedge funds held shares or bullish call options in GNTX a year ago. With hedgies' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
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More specifically, Ariel Investments was the largest shareholder of Gentex Corporation (NASDAQ:GNTX), with a stake worth $107.4 million reported as of the end of September. Trailing Ariel Investments was D E Shaw, which amassed a stake valued at $91.2 million. AQR Capital Management, Royce & Associates, and Nitorum Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Nitorum Capital allocated the biggest weight to Gentex Corporation (NASDAQ:GNTX), around 2.65% of its 13F portfolio. Factorial Partners is also relatively very bullish on the stock, dishing out 1.22 percent of its 13F equity portfolio to GNTX.
Due to the fact that Gentex Corporation (NASDAQ:GNTX) has witnessed declining sentiment from the entirety of the hedge funds we track, it's easy to see that there were a few fund managers who sold off their entire stakes in the third quarter. It's worth mentioning that Paul Tudor Jones's Tudor Investment Corp dropped the biggest position of the 750 funds watched by Insider Monkey, comprising about $4.9 million in stock. Charles Montanaro's fund, Montanaro Asset Management, also dumped its stock, about $4.1 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 7 funds in the third quarter.
Let's now review hedge fund activity in other stocks similar to Gentex Corporation (NASDAQ:GNTX). We will take a look at AptarGroup, Inc. (NYSE:ATR), Cosan S.A. (NYSE:CSAN), Rexnord Corp (NYSE:RXN), TuSimple Holdings Inc. (NASDAQ:TSP), Avis Budget Group Inc. (NASDAQ:CAR), Huntington Ingalls Industries Inc (NYSE:HII), and Olin Corporation (NYSE:OLN). This group of stocks' market valuations are similar to GNTX's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ATR,27,344498,0 CSAN,5,110211,0 RXN,30,840383,1 TSP,12,884094,-2 CAR,26,2463715,-1 HII,15,163344,-6 OLN,43,1169558,6 Average,22.6,853686,-0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.6 hedge funds with bullish positions and the average amount invested in these stocks was $854 million. That figure was $511 million in GNTX's case. Olin Corporation (NYSE:OLN) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. Gentex Corporation (NASDAQ:GNTX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GNTX is 47.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately GNTX wasn't nearly as popular as these 5 stocks and hedge funds that were betting on GNTX were disappointed as the stock returned 6.7% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Get real-time email alerts: Follow Gentex Corp (NASDAQ:GNTX)
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- Here is What Hedge Funds Think About AptarGroup, Inc. (ATR)
Dec 11, 2021
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards AptarGroup, Inc. (NYSE:ATR).
AptarGroup, Inc. (NYSE:ATR) shares haven't seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 27 hedge funds' portfolios at the end of the third quarter of 2021. Our calculations also showed that ATR isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare ATR to other stocks including Cosan S.A. (NYSE:CSAN), Rexnord Corp (NYSE:RXN), and TuSimple Holdings Inc. (NASDAQ:TSP) to get a better sense of its popularity.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind we're going to take a look at the new hedge fund action regarding AptarGroup, Inc. (NYSE:ATR).
Tim Woolley of Polar Capital
Do Hedge Funds Think ATR Is A Good Stock To Buy Now?
At Q3's end, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. By comparison, 28 hedge funds held shares or bullish call options in ATR a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
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Among these funds, Rivulet Capital held the most valuable stake in AptarGroup, Inc. (NYSE:ATR), which was worth $142.8 million at the end of the third quarter. On the second spot was Hawk Ridge Management which amassed $67.3 million worth of shares. Polar Capital, D E Shaw, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Rivulet Capital allocated the biggest weight to AptarGroup, Inc. (NYSE:ATR), around 7.45% of its 13F portfolio. Hawk Ridge Management is also relatively very bullish on the stock, designating 4.32 percent of its 13F equity portfolio to ATR.
Seeing as AptarGroup, Inc. (NYSE:ATR) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who were dropping their full holdings by the end of the third quarter. It's worth mentioning that Steve Cohen's Point72 Asset Management dumped the largest position of the 750 funds tracked by Insider Monkey, comprising about $21.8 million in stock. Renaissance Technologies, also dropped its stock, about $8.1 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now review hedge fund activity in other stocks similar to AptarGroup, Inc. (NYSE:ATR). We will take a look at Cosan S.A. (NYSE:CSAN), Rexnord Corp (NYSE:RXN), TuSimple Holdings Inc. (NASDAQ:TSP), Avis Budget Group Inc. (NASDAQ:CAR), Huntington Ingalls Industries Inc (NYSE:HII), Olin Corporation (NYSE:OLN), and EQT Corporation (NYSE:EQT). All of these stocks' market caps are closest to ATR's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CSAN,5,110211,0 RXN,30,840383,1 TSP,12,884094,-2 CAR,26,2463715,-1 HII,15,163344,-6 OLN,43,1169558,6 EQT,57,838226,14 Average,26.9,924219,1.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.9 hedge funds with bullish positions and the average amount invested in these stocks was $924 million. That figure was $344 million in ATR's case. EQT Corporation (NYSE:EQT) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. AptarGroup, Inc. (NYSE:ATR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ATR is 55.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately ATR wasn't nearly as popular as these 5 stocks and hedge funds that were betting on ATR were disappointed as the stock returned 0.4% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
- Hedge Funds Are Done Buying Zai Lab Limited (ZLAB)
Dec 9, 2021
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Zai Lab Limited (NASDAQ:ZLAB).
Zai Lab Limited (NASDAQ:ZLAB) shares haven't seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 36 hedge funds' portfolios at the end of September. Our calculations also showed that ZLAB isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare ZLAB to other stocks including FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), and Gentex Corporation (NASDAQ:GNTX) to get a better sense of its popularity.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let's take a look at the new hedge fund action surrounding Zai Lab Limited (NASDAQ:ZLAB). Kris Jenner - Rock Springs Capital
Kris Jenner of Rock Springs Capital Management
Do Hedge Funds Think ZLAB Is A Good Stock To Buy Now?
At the end of September, a total of 36 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. By comparison, 28 hedge funds held shares or bullish call options in ZLAB a year ago. With hedgies' sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Story continues
The largest stake in Zai Lab Limited (NASDAQ:ZLAB) was held by Viking Global, which reported holding $309.1 million worth of stock at the end of September. It was followed by Rock Springs Capital Management with a $113.6 million position. Other investors bullish on the company included Segantii Capital, Hudson Bay Capital Management, and Atika Capital. In terms of the portfolio weights assigned to each position Indus Capital allocated the biggest weight to Zai Lab Limited (NASDAQ:ZLAB), around 3.78% of its 13F portfolio. Segantii Capital is also relatively very bullish on the stock, setting aside 2.41 percent of its 13F equity portfolio to ZLAB.
Seeing as Zai Lab Limited (NASDAQ:ZLAB) has experienced falling interest from the smart money, we can see that there exists a select few funds that decided to sell off their full holdings last quarter. At the top of the heap, Richard Driehaus's Driehaus Capital dumped the largest stake of the "upper crust" of funds monitored by Insider Monkey, totaling about $44.3 million in stock, and Ting Jia's Octagon Capital Advisors was right behind this move, as the fund said goodbye to about $19.4 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Zai Lab Limited (NASDAQ:ZLAB) but similarly valued. These stocks are FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), Gentex Corporation (NASDAQ:GNTX), AptarGroup, Inc. (NYSE:ATR), Cosan S.A. (NYSE:CSAN), Rexnord Corp (NYSE:RXN), and TuSimple Holdings Inc. (NASDAQ:TSP). This group of stocks' market values are closest to ZLAB's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FSV,14,286751,1 WEX,19,513228,-1 GNTX,27,511079,-7 ATR,27,344498,0 CSAN,5,110211,0 RXN,30,840383,1 TSP,12,884094,12 Average,19.1,498606,0.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.1 hedge funds with bullish positions and the average amount invested in these stocks was $499 million. That figure was $861 million in ZLAB's case. Rexnord Corp (NYSE:RXN) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Zai Lab Limited (NASDAQ:ZLAB) is more popular among hedge funds. Our overall hedge fund sentiment score for ZLAB is 85. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately ZLAB wasn't nearly as popular as these 5 stocks and hedge funds that were betting on ZLAB were disappointed as the stock returned -34.3% since the end of the third quarter (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
Get real-time email alerts: Follow Zai Lab Ltd (NASDAQ:ZLAB)
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Disclosure: None. This article was originally published at Insider Monkey.
- Was The Smart Money Right About Eagle Materials, Inc. (EXP)?
Nov 10, 2021
In this article we will analyze whether Eagle Materials, Inc. (NYSE:EXP) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Eagle Materials, Inc. (NYSE:EXP) shareholders have witnessed an increase in enthusiasm from smart money lately. Eagle Materials, Inc. (NYSE:EXP) was in 36 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 41. There were 35 hedge funds in our database with EXP positions at the end of the first quarter. Our calculations also showed that EXP isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Martin Whitman Third Avenue Management Marty Whitman
Martin Whitman of Third Avenue Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let's take a gander at the new hedge fund action surrounding Eagle Materials, Inc. (NYSE:EXP).
Story continues
Do Hedge Funds Think EXP Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 36 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in EXP over the last 24 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
More specifically, Citadel Investment Group was the largest shareholder of Eagle Materials, Inc. (NYSE:EXP), with a stake worth $51.1 million reported as of the end of June. Trailing Citadel Investment Group was Waratah Capital Advisors, which amassed a stake valued at $20.9 million. SG Capital Management, Third Avenue Management, and Soros Fund Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Mountaineer Partners Management allocated the biggest weight to Eagle Materials, Inc. (NYSE:EXP), around 8.23% of its 13F portfolio. SG Capital Management is also relatively very bullish on the stock, designating 5.69 percent of its 13F equity portfolio to EXP.
As industrywide interest jumped, some big names were leading the bulls' herd. Soros Fund Management, managed by George Soros, initiated the largest position in Eagle Materials, Inc. (NYSE:EXP). Soros Fund Management had $11.7 million invested in the company at the end of the quarter. Mark Lee's Mountaineer Partners Management also initiated a $11.3 million position during the quarter. The following funds were also among the new EXP investors: Zilvinas Mecelis's Covalis Capital, Allan Teh's Kamunting Street Capital, and Chuck Royce's Royce & Associates.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Eagle Materials, Inc. (NYSE:EXP) but similarly valued. These stocks are CACI International Inc (NYSE:CACI), Pan American Silver Corp. (NASDAQ:PAAS), Rexnord Corp (NYSE:RXN), NOV Inc. (NYSE:NOV), Stag Industrial Inc (NYSE:STAG), NCR Corporation (NYSE:NCR), and AbCellera Biologics Inc. (NASDAQ:ABCL). All of these stocks' market caps resemble EXP's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CACI,26,491404,5 PAAS,24,312456,-3 RXN,29,521863,4 NOV,30,993193,1 STAG,15,232197,-2 NCR,38,526452,14 ABCL,18,773158,-2 Average,25.7,550103,2.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.7 hedge funds with bullish positions and the average amount invested in these stocks was $550 million. That figure was $244 million in EXP's case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 15 bullish hedge fund positions. Eagle Materials, Inc. (NYSE:EXP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EXP is 78. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 through November 5th and still beat the market by 3.1 percentage points. Hedge funds were also right about betting on EXP as the stock returned 9.7% since the end of Q2 (through 11/5) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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- Where Do Hedge Funds Stand On Hayward Holdings, Inc. (HAYW)?
Oct 29, 2021
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 900 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Hayward Holdings, Inc. (NYSE:HAYW).
Hayward Holdings, Inc. (NYSE:HAYW) has experienced a decrease in hedge fund interest of late. Hayward Holdings, Inc. (NYSE:HAYW) was in 19 hedge funds' portfolios at the end of June. The all time high for this statistic is 25. Our calculations also showed that HAYW isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
So, why do we pay attention to hedge fund sentiment before making any investment decisions? 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. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings. Stuart Zimmer Zimmer Partners
Stuart Zimmer of Zimmer Partners
Now let's take a glance at the recent hedge fund action encompassing Hayward Holdings, Inc. (NYSE:HAYW).
Story continues
Do Hedge Funds Think HAYW Is A Good Stock To Buy Now?
At Q2's end, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -24% from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in HAYW a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Alyeska Investment Group held the most valuable stake in Hayward Holdings, Inc. (NYSE:HAYW), which was worth $86.7 million at the end of the second quarter. On the second spot was Noked Capital which amassed $43.7 million worth of shares. Zimmer Partners, Driehaus Capital, and Candlestick Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Noked Capital allocated the biggest weight to Hayward Holdings, Inc. (NYSE:HAYW), around 10.89% of its 13F portfolio. Prescott Group Capital Management is also relatively very bullish on the stock, setting aside 1.4 percent of its 13F equity portfolio to HAYW.
Judging by the fact that Hayward Holdings, Inc. (NYSE:HAYW) has witnessed bearish sentiment from hedge fund managers, we can see that there was a specific group of hedge funds that slashed their entire stakes heading into Q3. Interestingly, Phill Gross and Robert Atchinson's Adage Capital Management cut the largest stake of all the hedgies watched by Insider Monkey, valued at close to $27 million in stock. Paul Marshall and Ian Wace's fund, Marshall Wace LLP, also cut its stock, about $19.1 million worth. These moves are interesting, as aggregate hedge fund interest fell by 6 funds heading into Q3.
Let's now take a look at hedge fund activity in other stocks similar to Hayward Holdings, Inc. (NYSE:HAYW). These stocks are Eagle Materials, Inc. (NYSE:EXP), CACI International Inc (NYSE:CACI), Pan American Silver Corp. (NASDAQ:PAAS), Rexnord Corp (NYSE:RXN), NOV Inc. (NYSE:NOV), Stag Industrial Inc (NYSE:STAG), and NCR Corporation (NYSE:NCR). This group of stocks' market values resemble HAYW's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EXP,36,243658,1 CACI,26,491404,5 PAAS,24,312456,-3 RXN,29,521863,4 NOV,30,993193,1 STAG,15,232197,-2 NCR,38,526452,14 Average,28.3,474460,2.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 28.3 hedge funds with bullish positions and the average amount invested in these stocks was $474 million. That figure was $225 million in HAYW's case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 15 bullish hedge fund positions. Hayward Holdings, Inc. (NYSE:HAYW) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for HAYW is 30.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately HAYW wasn't nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); HAYW investors were disappointed as the stock returned -7.9% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
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- Here is What Hedge Funds Think About Primerica, Inc. (PRI)
Oct 27, 2021
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Primerica, Inc. (NYSE:PRI).
Hedge fund interest in Primerica, Inc. (NYSE:PRI) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that PRI isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as BOK Financial Corporation (NASDAQ:BOKF), Hayward Holdings, Inc. (NYSE:HAYW), and Eagle Materials, Inc. (NYSE:EXP) to gather more data points.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Story continues
Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, plant based food market is expected to explode 100-fold by 2050, so we are checking out this under-the-radar stock. We go through lists like the 10 best growth stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now we're going to take a gander at the new hedge fund action encompassing Primerica, Inc. (NYSE:PRI).
Do Hedge Funds Think PRI Is A Good Stock To Buy Now?
Heading into the third quarter of 2021, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. On the other hand, there were a total of 25 hedge funds with a bullish position in PRI a year ago. With the smart money's capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions). Is PRI A Good Stock To Buy?
The largest stake in Primerica, Inc. (NYSE:PRI) was held by Brave Warrior Capital, which reported holding $286.8 million worth of stock at the end of June. It was followed by Cantillon Capital Management with a $152.8 million position. Other investors bullish on the company included Arrowstreet Capital, Prospector Partners, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Brave Warrior Capital allocated the biggest weight to Primerica, Inc. (NYSE:PRI), around 9.85% of its 13F portfolio. Prospector Partners is also relatively very bullish on the stock, dishing out 1.28 percent of its 13F equity portfolio to PRI.
Since Primerica, Inc. (NYSE:PRI) has faced a decline in interest from hedge fund managers, it's safe to say that there lies a certain "tier" of hedgies that decided to sell off their full holdings last quarter. Interestingly, John Overdeck and David Siegel's Two Sigma Advisors sold off the biggest position of the "upper crust" of funds followed by Insider Monkey, totaling close to $0.7 million in stock. Karim Abbadi and Edward McBride's fund, Centiva Capital, also dumped its stock, about $0.3 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Primerica, Inc. (NYSE:PRI) but similarly valued. We will take a look at BOK Financial Corporation (NASDAQ:BOKF), Hayward Holdings, Inc. (NYSE:HAYW), Eagle Materials, Inc. (NYSE:EXP), CACI International Inc (NYSE:CACI), Pan American Silver Corp. (NASDAQ:PAAS), Rexnord Corp (NYSE:RXN), and National Oilwell Varco, Inc. (NYSE:NOV). All of these stocks' market caps match PRI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BOKF,13,438145,-4 HAYW,19,225060,-6 EXP,36,243658,1 CACI,26,491404,5 PAAS,24,312456,-3 RXN,29,521863,4 NOV,30,993193,1 Average,25.3,460826,-0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.3 hedge funds with bullish positions and the average amount invested in these stocks was $461 million. That figure was $486 million in PRI's case. Eagle Materials, Inc. (NYSE:EXP) is the most popular stock in this table. On the other hand BOK Financial Corporation (NASDAQ:BOKF) is the least popular one with only 13 bullish hedge fund positions. Primerica, Inc. (NYSE:PRI) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for PRI is 37.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on PRI as the stock returned 11.4% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.
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- Hedge Funds Aren’t Crazy About Pan American Silver Corp. (PAAS) Anymore
Oct 25, 2021
Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Pan American Silver Corp. (NASDAQ:PAAS), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Pan American Silver Corp. (NASDAQ:PAAS) shareholders have witnessed a decrease in hedge fund interest in recent months. Pan American Silver Corp. (NASDAQ:PAAS) was in 24 hedge funds' portfolios at the end of June. The all time high for this statistic is 30. There were 27 hedge funds in our database with PAAS positions at the end of the first quarter. Our calculations also showed that PAAS isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Story continues Eric Sprott Sprott Asset Management
Eric Sprott of Sprott Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let's take a gander at the key hedge fund action encompassing Pan American Silver Corp. (NASDAQ:PAAS).
Do Hedge Funds Think PAAS Is A Good Stock To Buy Now?
At second quarter's end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards PAAS over the last 24 quarters. With hedgies' capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
The largest stake in Pan American Silver Corp. (NASDAQ:PAAS) was held by Slate Path Capital, which reported holding $98.5 million worth of stock at the end of June. It was followed by Sprott Asset Management with a $89.7 million position. Other investors bullish on the company included Citadel Investment Group, Renaissance Technologies, and Lansdowne Partners. In terms of the portfolio weights assigned to each position Slate Path Capital allocated the biggest weight to Pan American Silver Corp. (NASDAQ:PAAS), around 5.5% of its 13F portfolio. Sprott Asset Management is also relatively very bullish on the stock, earmarking 5.23 percent of its 13F equity portfolio to PAAS.
Judging by the fact that Pan American Silver Corp. (NASDAQ:PAAS) has experienced falling interest from hedge fund managers, it's easy to see that there exists a select few hedge funds that slashed their full holdings in the second quarter. Interestingly, Richard Driehaus's Driehaus Capital sold off the biggest investment of the "upper crust" of funds followed by Insider Monkey, worth close to $52.9 million in stock. David Halpert's fund, Prince Street Capital Management, also cut its stock, about $4.8 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 3 funds in the second quarter.
Let's now review hedge fund activity in other stocks similar to Pan American Silver Corp. (NASDAQ:PAAS). We will take a look at Rexnord Corp (NYSE:RXN), NOV Inc. (NYSE:NOV), Stag Industrial Inc (NYSE:STAG), NCR Corporation (NYSE:NCR), AbCellera Biologics Inc. (NASDAQ:ABCL), DigitalOcean Holdings, Inc. (NYSE:DOCN), and Yatsen Holding Limited (NYSE:YSG). This group of stocks' market values resemble PAAS's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RXN,29,521863,4 NOV,30,993193,1 STAG,15,232197,-2 NCR,38,526452,14 ABCL,18,773158,-2 DOCN,16,219780,-6 YSG,18,374234,-2 Average,23.4,520125,1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.4 hedge funds with bullish positions and the average amount invested in these stocks was $520 million. That figure was $312 million in PAAS's case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 15 bullish hedge fund positions. Pan American Silver Corp. (NASDAQ:PAAS) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PAAS is 45.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately PAAS wasn't nearly as popular as these 5 stocks and hedge funds that were betting on PAAS were disappointed as the stock returned -8.5% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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- Do Hedge Funds Love CACI International Inc (CACI)?
Oct 19, 2021
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of June 30th, 2021. What do these smart investors think about CACI International Inc (NYSE:CACI)?
CACI International Inc (NYSE:CACI) investors should pay attention to an increase in enthusiasm from smart money recently. CACI International Inc (NYSE:CACI) was in 26 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 34. There were 21 hedge funds in our database with CACI holdings at the end of March. Our calculations also showed that CACI isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. David Harding
David Harding of Winton Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let's take a gander at the latest hedge fund action encompassing CACI International Inc (NYSE:CACI).
Story continues
Do Hedge Funds Think CACI Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 24% from the previous quarter. On the other hand, there were a total of 34 hedge funds with a bullish position in CACI a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Murray Stahl's Horizon Asset Management has the most valuable position in CACI International Inc (NYSE:CACI), worth close to $114.1 million, corresponding to 2.3% of its total 13F portfolio. The second most bullish fund manager is Ken Griffin of Citadel Investment Group, with a $91.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism include Cliff Asness's AQR Capital Management, D. E. Shaw's D E Shaw and Israel Englander's Millennium Management. In terms of the portfolio weights assigned to each position Engine Capital allocated the biggest weight to CACI International Inc (NYSE:CACI), around 6.49% of its 13F portfolio. Akaris Global Partners is also relatively very bullish on the stock, designating 5.82 percent of its 13F equity portfolio to CACI.
Now, key money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, established the largest position in CACI International Inc (NYSE:CACI). Alyeska Investment Group had $29.6 million invested in the company at the end of the quarter. Ravee Mehta's Nishkama Capital also made a $0.8 million investment in the stock during the quarter. The other funds with brand new CACI positions are Michael Gelband's ExodusPoint Capital, David Harding's Winton Capital Management, and Karim Abbadi and Edward McBride's Centiva Capital.
Let's check out hedge fund activity in other stocks similar to CACI International Inc (NYSE:CACI). We will take a look at Pan American Silver Corp. (NASDAQ:PAAS), Rexnord Corp (NYSE:RXN), National Oilwell Varco, Inc. (NYSE:NOV), Stag Industrial Inc (NYSE:STAG), NCR Corporation (NYSE:NCR), AbCellera Biologics Inc. (NASDAQ:ABCL), and DigitalOcean Holdings, Inc. (NYSE:DOCN). All of these stocks' market caps are closest to CACI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PAAS,24,312456,-3 RXN,29,521863,4 NOV,30,993193,1 STAG,15,232197,-2 NCR,38,526452,14 ABCL,18,773158,-2 DOCN,16,219780,-6 Average,24.3,511300,0.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.3 hedge funds with bullish positions and the average amount invested in these stocks was $511 million. That figure was $491 million in CACI's case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 15 bullish hedge fund positions. CACI International Inc (NYSE:CACI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CACI is 56.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Hedge funds were also right about betting on CACI as the stock returned 10.5% since the end of Q2 (through 10/15) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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