The Insider Monkey team has completed processing of 13F quarterly shipments for the September quarter submitted by hedge funds and other money managers included in our expanded database. Most hedge fund investors have made strong gains from strong market performance, which has certainly led them to adjust their holdings so as to maintain the desired risk profile. As a result, the relevance of these public records and their content is indisputable, as they can reveal numerous high-potential stocks. The following article will discuss the feeling of smart money towards Palantir Technologies Inc. (NYSE: PLTR).
Is PLTR a good stock to buy? Smart money had an optimistic vision. The number of bullish hedge fund bets has recently increased by 31. Palantir Technologies Inc. (NYSE: PLTR) was in 31 hedge fund portfolios at the end of the third quarter of 2020. Our calculations also showed that PLTR is not among the 30 most popular hedge fund shares ( click for the T3 leaderboard and watch the video for a quick look at the top 5 actions). Video: Watch our video on the top 5 most popular hedge funds.
Today there are dozens of indicators used by investors to analyze their investments in stocks. A pair of less used indicators are hedge funds and inside trading movements. We have shown that, from a historical point of view, those who pursue the best choices of the best money managers can beat the S&P 500 by a superb margin (see details here).
Dan Loeb of the Third Point
At Insider Monkey we do not leave any stone unturned when we look for the next excellent investment idea. For example, the House passed a bill that decriminalizes marijuana. So we’re checking this under the radar cannabis stock right now. We go through lists like the 15 best blue chip stocks to buy to choose the best stocks with high capacity to buy. Even if we recommend positions in only a small part of the companies we analyze, we check as many stocks as possible. We read hedge fund investors’ letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. With all of this in mind, let’s take a look at the recent hedge fund action involving Palantir Technologies Inc. (NYSE: PLTR).
Do you think PLTR hedge funds are a good stock to buy now?
Towards the fourth quarter of 2020, a total of 31 of the hedge funds pursued by Insider Monkey were up on this stock, a change of 31 compared to the second quarter of 2020. Below, you can check the change the sentiment of hedge funds to PLTR in the last 21 quarters. So, let’s examine which hedge funds were among the top holders of the shares and which hedge funds made big moves.
Largest stake in Palantir Technologies Inc. (NYSE: PLTR) was owned by Point72 Asset Management, which reportedly held shares worth $ 284.1 million at the end of September. It was followed by Soros Fund Management, with a position of 175.3 million dollars. Other investors in the company included Discovery Capital Management, Anchorage Advisors and Third Point. In terms of portfolio weights assigned to each position, Discovery Capital Management allocated the largest share to Palantir Technologies Inc. (NYSE: PLTR), about 6.66% of its 13F portfolio. AltraVue Capital is also relatively very optimistic about equities, setting aside 5.01% of its 13F share portfolio to PLTR.
As a result, key money managers jumped into Palantir Technologies Inc. (NYSE: PLTR) First. Point72 Asset Management, managed by Steve Cohen, initiated the largest position in Palantir Technologies Inc. (NYSE: PLTR). Point72 Asset Management invested $ 284.1 million in the company at the end of the quarter. George Soros’ management of the Soros Fund also made a $ 175.3 million investment in shares during the quarter. The following funds were also among the new PLTR investors: Rob Citrone’s Discovery Capital Management, Kevin Michael Ulrich and Anthony Davis’ Anchorage Advisors and Dan Loeb’s third point.
Let’s also look at hedge fund activity in other stocks – not necessarily in the same industry as Palantir Technologies Inc. (NYSE: PLTR), but rated similarly. We’ll take a look at Rollins, Inc. (NYSE: ROL), Discover Financial Services (NYSE: DFS), Valero Energy Corporation (NYSE: VLO), Coca-Cola European Partners plc (NYSE: CCEP), CMS Energy Corporation (NYSE: CMS), CGI Inc. (NYSE: GIB) and Conagra Brands, Inc. (NYSE: CAG). This group of stock market valuations are similar to the market valuation of PLTR.
[table] Ticker, number of HFs with positions, Total value of HF positions (x1000), Change of HF position ROL, 29,673189.0 DFS, 47,1120616,3 VLO, 38,237285, -1 CCEP, 23,464184, – 4 CMS, 29.370207, -1 GIB, 20.191122.1 CAG, 35.770291.0 Medium, 31.6.546699, -0.3 [/table]
View the table here if you have formatting issues.
As you can see, these shares had on average 31.6 hedge funds with bullish positions, and the average amount invested in these shares was $ 547 million. This figure was $ 643 million in the PLTR case. Discover Financial Services (NYSE: DFS) is the most popular stock in this table. On the other hand, CGI Inc. (NYSE: GIB) is the least popular, with only 20 bullish hedge fund positions. Palantir Technologies Inc. (NYSE: PLTR) is not the least popular stock in this group, but the interest rate of hedge funds is still below average. Our overall speculative fund sentiment for PLTR is 42.6. Shares with a higher number of hedge fund positions than other stocks, as well as in relation to their historical range, receive a higher sentiment score. Our calculations showed that the most popular 20 shares of hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These shares gained 33.3% in 2020 to December 18 and continued to outperform the market by 16.4 percentage points. A small number of hedge funds were also right about betting on PLTR, as shares returned 173.4% from the end of the third quarter (up to 12/18) and outperformed the market. with an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
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