We are still in a general bull market and many stocks that smart money investors got into in 2019 rose. Among them, Facebook and Microsoft were among the top 3 picks, and these stocks each rose more than 57%. The top 3 hedge fund stocks returned 44.6% this year, outperforming the S&P 500 ETFs by almost 14 percentage points. It’s a big deal. For this reason, tracking the Smart Money Sentiment is a useful tool to identify the next stock to invest in.
Hedge funds’ reputation as smart investors has deteriorated over the past decade as their hedged returns have failed to match the unsecured returns of the market indices. Our research has shown that small cap hedge funds outperformed the market in double digits annually between 1999 and 2016, but the outperformance margin has been declining in recent years. Nevertheless, we were able to identify in advance a selected group of hedge fund holdings that the Russell 2000 ETFs have outperformed by 40 percentage points since May 2014 (see details here). We also pre-identified a select group of hedge fund holdings that lagged the market by 10 percentage points per year between 2006 and 2017. Interestingly, the underperformance of these stocks has increased in recent years. Investors who have been in the market for a long time and have short positions in these stocks would have achieved an annual return of more than 27% between 2015 and 2017. We have been tracking and publishing the list of these shares in our quarterly newsletter since February 2017.
Michael Lowenstein from Kensico Capital
its pitch, We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recommended this December Adams Energy As a one-way bet based on a fund manager’s letter to investors, the stock is still extremely cheap, even though it has already increased by 20 percent. With this in mind, we will take a look at the new hedge fund measures related to EQT Corporation (NYSE: EQT). “Data-reactid =” 35 “> When it comes to finding the next big investment, we leave no stone unturned. For example, one of the most bullish analysts in America just put his money where his mouth is. He says,” I’m investing today 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 recommended this December Adams Energy As a one-way bet based on a fund manager’s letter to investors, the stock is still extremely cheap, even though it has already increased by 20 percent. With this in mind, let’s take a look at the new hedge fund measures related to EQT Corporation (NYSE: EQT).
Hedge fund activity at EQT Corporation (NYSE: EQT)
At the end of the third quarter, a total of 35 of the hedge funds tracked by Insider Monkey were long positions in this stock, a change of 0% compared to the previous quarter. Below you can read about the change in hedge fund sentiment towards EQT over the past 17 quarters. So let’s find out which hedge funds were among the top holders of the stock and which hedge funds made big moves.
The largest holding in EQT Corporation (NYSE: EQT) was held by Kensico Capital, which held $ 98.4 million in shares at the end of September. The Citadel Investment Group followed with a position of $ 92 million. Other investors who rated the company positively included Firefly Value Partners, Deep Basin Capital and Bridgewater Associates. In terms of the portfolio weights assigned to each position, SIR Capital Management assigned the greatest weight to EQT Corporation (NYSE: EQT) with around 6.48% of its 13F portfolio. Firefly Value Partners is also relatively optimistic about the stock, allocating 6.38 percent of its 13F stock portfolio to EQT.
Given the fact that EQT Corporation (NYSE: EQT) was in a downward mood among all of the hedge funds we tracked, it is logical that in the third quarter there were some hedge funds that sold all of their holdings. Interestingly, HBK Investments has acquired the largest share of the 750 funds observed by Insider Monkey, valued at $ 79.1 million, from David Costen Haley. Anand Parekh’s fund, Alyeska Investment Group, also sold approximately $ 15.5 million of its shares. These declining behaviors are important because overall hedge fund rates have stayed the same (which, in our experience, is a declining signal).
Now let’s review hedge fund activity in other stocks that are similar to EQT Corporation (NYSE: EQT). These stocks are Gol Linhas Aereas Inteligentes SA (NYSE: GOL), Enphase Energy Inc. (NASDAQ: ENPH), Rattler Midstream LP (NASDAQ: RTLR) and Manchester United PLC (NYSE: MANU). The market capitalization of this group of shares is similar to the market capitalization of EQT.
[table] Ticker, number of HFs with positions, total value of the HF positions (x1000), change of the HF position GOL, 11.194286.3 ENPH, 32.289899.12 RTLR, 11.163347, -9 MANU, 11.32460, 1 average 16.25, 169998, 1.75 [/table]
View the table here if formatting problems occur.
The 5 most popular stocks among hedge funds
Disclosure: none. This article was originally published by Insider Monkey.