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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 September. 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 Advanced Micro Devices, Inc. (NASDAQ:AMD), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is AMD a good stock to buy? Investors who are in the know were taking a bullish view. The number of bullish hedge fund bets went up by 2 lately. Advanced Micro Devices, Inc. (NASDAQ:AMD) was in 65 hedge funds' portfolios at the end of September. The all time high for this statistic is 74. Our calculations also showed that AMD 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. With all of this in mind let's go over the fresh hedge fund action encompassing Advanced Micro Devices, Inc. (NASDAQ:AMD).
Michael Gelband of ExodusPoint Capital
Do Hedge Funds Think AMD Is A Good Stock To Buy Now?
At Q3's end, a total of 65 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from one quarter earlier. By comparison, 71 hedge funds held shares or bullish call options in AMD a year ago. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
The largest stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) was held by Fisher Asset Management, which reported holding $1623.7 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $1328.5 million position. Other investors bullish on the company included Renaissance Technologies, Sylebra Capital Management, and D E Shaw. In terms of the portfolio weights assigned to each position Sylebra Capital Management allocated the biggest weight to Advanced Micro Devices, Inc. (NASDAQ:AMD), around 11.33% of its 13F portfolio. Taconic Capital is also relatively very bullish on the stock, designating 10.91 percent of its 13F equity portfolio to AMD.
As aggregate interest increased, specific money managers were leading the bulls' herd. Alkeon Capital Management, managed by Panayotis Takis Sparaggis, assembled the biggest call position in Advanced Micro Devices, Inc. (NASDAQ:AMD). Alkeon Capital Management had $158.5 million invested in the company at the end of the quarter. Michel Massoud's Melqart Asset Management also initiated a $67.9 million position during the quarter. The other funds with new positions in the stock are John Hurley's Cavalry Asset Management, Michael Gelband's ExodusPoint Capital, and Simon Sadler's Segantii Capital.
Let's go over hedge fund activity in other stocks similar to Advanced Micro Devices, Inc. (NASDAQ:AMD). We will take a look at International Business Machines Corp. (NYSE:IBM), ServiceNow Inc (NYSE:NOW), Sanofi (NASDAQ:SNY), American Tower Corporation (NYSE:AMT), Amgen, Inc. (NASDAQ:AMGN), The Toronto-Dominion Bank (NYSE:TD), and Intuitive Surgical, Inc. (NASDAQ:ISRG). This group of stocks' market caps match AMD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position IBM,41,1405372,0 NOW,87,7527653,-4 SNY,19,1287779,3 AMT,61,4474779,6 AMGN,52,1448267,-1 TD,17,294336,0 ISRG,61,3536259,1 Average,48.3,2853492,0.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 48.3 hedge funds with bullish positions and the average amount invested in these stocks was $2853 million. That figure was $5254 million in AMD's case. ServiceNow Inc (NYSE:NOW) is the most popular stock in this table. On the other hand The Toronto-Dominion Bank (NYSE:TD) is the least popular one with only 17 bullish hedge fund positions. Advanced Micro Devices, Inc. (NASDAQ:AMD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AMD is 67.6. 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. 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. Hedge funds were also right about betting on AMD as the stock returned 53.9% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.