Hedge fund favorites versus Applied Materials, Inc. (AMAT) 2019

Investing in hedge funds can bring big profits, but it is not for everyone because hedge funds are only available to wealthy individuals. They generate significant returns for investors to justify their high fees, and they use a lot of time and complex research processes to determine the best stocks to invest in. Small caps are a particularly interesting group of stocks that hedge funds like. Due to the huge amount of capital, hedge funds cannot invest much in small caps. However, our research has shown that their most popular small-cap ideas are less cheap and produce higher returns than their large and mega-cap picks and the broader market of hedge funds. For this reason, we pay special attention to the activity of hedge funds in the small cap sector. Nevertheless, it is also possible to find undervalued large-cap stocks if you follow the movements of the hedge funds. In this article, we examine what these Applied Materials, Inc. (NASDAQ: AMAT) funds think based on this data.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Applied Materials, Inc. (NASDAQ: AMAT) was represented in 50 hedge fund portfolios at the end of the third quarter of 2019. AMAT has seen an increase in the activity of the world's largest hedge funds in recent months. At the end of the previous quarter there were 44 hedge funds with AMAT positions in our database. Our calculations also showed that AMAT is not among the 30 most popular stocks among hedge funds (click for third quarter rankings and watch the video at the end of this article for second quarter rankings). "Data reactid =" 12 ">Applied Materials, Inc. (NASDAQ: AMAT) was represented in 50 hedge fund portfolios at the end of the third quarter of 2019. AMAT has seen an increase in the activity of the world's largest hedge funds in recent months. At the end of the previous quarter there were 44 hedge funds with AMAT positions in our database. Our calculations also showed that AMAT is not among the 30 most popular stocks among hedge funds (click for third quarter rankings and watch the video at the end of this article for second quarter rankings).

Why do we pay attention to the mood in hedge funds at all? Our research has shown that large-cap hedge funds did not actually beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that have outperformed the Russell 2000 ETFs by 40 percentage points since May 2014 (details here). We were also able to identify in advance a selected group of hedge fund holdings that will significantly underperform the market. We've been tracking and sharing the list of these stocks since February 2017, and they lost 27.8% by November 21, 2019. For this reason, we believe that hedge fund sentiment is an extremely useful indicator that investors should watch out for.

See Also:  can we file a complaint and what do offenders risk?

(ID of the label = "attachment_30621" align = "alignnone" width = "600") Cliff Asness from AQR Capital Management (/ caption)

AQR CAPITAL MANAGEMENT

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We leave no stone unturned in the search for the next Great investment idea , for example, Discover offers This crazy cashback cardSo let's look at shortening the stock. One of the most bullish analysts in America just put his money where his mouth is. He says: "Today I invest more than in early 2009." So we check out its pitch, We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We're even considering this genius option weekly trading ideas, This December, we recommended Adams Energy as a one-way bet based on a fund manager's letter to investors. The share has already increased by 20 percent. With that in mind, let's take a look at the recent hedge fund action related to Applied Materials, Inc. (NASDAQ: AMAT). "Data-reactid =" 35 "> When looking for the next great investment idea, we leave no stone unturned to Discover This crazy cashback cardSo let's look at shortening the stock. One of the most bullish analysts in America just put his money where his mouth is. He says: "Today I invest more than in early 2009." So we check out its pitch, We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We're even considering this genius option weekly trading ideas, This December, we recommended Adams Energy as a one-way bet based on a fund manager's letter to investors. The share has already increased by 20 percent. With this in mind, let's take a look at recent hedge fund measures related to Applied Materials, Inc. (NASDAQ: AMAT).

See Also:  Volkswagen withdraws advertising in South Africa because of sexism charge

What does Smart Money think of Applied Materials, Inc. (NASDAQ: AMAT)?

At the end of the third quarter, a total of 50 of the hedge funds covered by Insider Monkey held long positions in this share, a change of 14% compared to the second quarter of 2019. The graph below shows the number of hedge funds with a bullish position in AMAT over the past 17 quarters. Because smart money positions are subject to their usual fluctuations, there are some notable hedge fund managers who have significantly increased their positions (or have already built up large positions).

Is AMAT a good stock to buy?

The largest holding in Applied Materials, Inc. (NASDAQ: AMAT) was held by AQR Capital Management, which held $ 468.1 million in shares at the end of September. Generation Investment Management followed with a position of $ 229.6 million. Other investors who rated the company positively included Matrix Capital Management, Lansdowne Partners and Millennium Management. In relation to the portfolio weights assigned to each position, Abrams Bison Investments Applied Materials, Inc. (NASDAQ: AMAT) assigned the largest weighting with around 13.85% of its 13F portfolio. Praesidium Investment Management is also relatively optimistic about the stock: 5.47 percent of its 13F stock portfolio is earmarked for AMAT.

Now some big names have driven this upward movement. Hitchwood Capital Management, managed by James Crichton, initiated the largest position in Applied Materials, Inc. (NASDAQ: AMAT). Hitchwood Capital Management had invested $ 54.9 million in the company at the end of the quarter. Steve Cohen's Point72 Asset Management invested $ 49.2 million in the share in the quarter. The other funds with brand new AMAT positions are Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, Dmitry Balyasnys Balyasny Asset Management and Leon Shaulovs Maplelane Capital.

Now let's take a look at hedge fund activity in other stocks – not necessarily in the same industry as Applied Materials, Inc. (NASDAQ: AMAT), but rated similarly. We'll look at Relx PLC (NYSE: RELX), Phillips 66 (NYSE: PSX), Honda Motor Co Ltd (NYSE: HMC) and Edwards Lifesciences Corporation (NYSE: EW). All market capitalizations of these stocks are similar to AMAT's market capitalization.

See Also:  Díaz anticipates that sectors such as tourism will continue with the ERTE conditions after June 30

(Table) Ticker, number of HFs with positions, total value of the HF positions (x1000), change of the HF position RELX, 6.105678.3 PSX, 36.1315132, -3 HMC, 10.129921.3 EW, 34, 1384665.1 average, 21.5.733849.1 (/ table)

View the table here if formatting problems occur.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As you can see, these stocks had an average of 21 , 5 hedge funds with bullish positions and an average investment in these stocks of $ 734 million, at AMAT $ 2356 million, Phillips 66 (NYSE: PSX) is the most popular stock in this table. NYSE: RELX) is with only 6 bullish hedge fund positions the least popular stock Compared to these stocks, Applied Materials, Inc. (NASDAQ: AMAT) is more popular with hedge funds Until December 23, 2019, the stock returned 41.1% and outperformed the S& P 500 ETF (SPY) by 10.1 percentage points Hedge funds were clearly right to accumulate market capitalizations in this stock compared to other stocks with similar values. Video: Click on the image to watch our video on the five most popular hedge fund stocks."data-reactid =" 67 "> As you can see, these stocks had an average of 21.5 hedge funds with optimistic positions, and the average amount invested in these stocks was $ 734 million in the case of AMAT was $ 2356 million, Phillips 66 (NYSE: PSX) is the most popular stock in this table, while Relx PLC (NYSE: RELX) is the least popular with only 6 bullish hedge fund positions compared to these stocks Applied Materials, Inc. (NASDAQ: AMAT) Our calculations showed that the 20 most popular hedge fund stocks had a return of 41.1% in 2019 and the S&P 500 ETF (SPY) by 10 by December 23 , 1 percentage point higher Since the share achieved a return of 90% in 2019 (until December 23) and outperformed the market many times over, hedge funds were clearly right compared to other shares with a similar market capitalization. Video: Click on the image to watch our video on the five most popular hedge fund stocks.

The 5 most popular stocks among hedge funds

Disclosure: none. This article was originally published by Insider Monkey.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Related content"data-reactid =" 81 ">Related content

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.