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Did Hedge Funds Drop The Ball On Clarivate Analytics Plc (CCC)?

Abigail Fisher

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 more than 730 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of June 28th, 2019. What do these smart investors think about Clarivate Analytics Plc (NYSE:CCC)?

Clarivate Analytics Plc (NYSE:CCC) was in 21 hedge funds' portfolios at the end of June. CCC investors should pay attention to a decrease in enthusiasm from smart money recently. There were 22 hedge funds in our database with CCC holdings at the end of the previous quarter. Our calculations also showed that CCC isn't among the 30 most popular stocks among hedge funds (view the video below). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

5 Most Popular Stocks Among Hedge Funds

To most stock holders, hedge funds are viewed as underperforming, old financial vehicles of yesteryear. While there are more than 8000 funds in operation at present, Our researchers choose to focus on the crème de la crème of this club, around 750 funds. Most estimates calculate that this group of people control most of all hedge funds' total capital, and by shadowing their first-class equity investments, Insider Monkey has uncovered a number of investment strategies that have historically outpaced Mr. Market. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points annually since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .

CCC_oct2019

Let's go over the latest hedge fund action surrounding Clarivate Analytics Plc (NYSE:CCC).

How have hedgies been trading Clarivate Analytics Plc (NYSE:CCC)?

At the end of the second quarter, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from the first quarter of 2019. The graph below displays the number of hedge funds with bullish position in CCC over the last 16 quarters. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

Nehal Chopra Tiger Ratan Capital Group

The largest stake in Clarivate Analytics Plc (NYSE:CCC) was held by Select Equity Group, which reported holding $154.4 million worth of stock at the end of March. It was followed by Brahman Capital with a $62.9 million position. Other investors bullish on the company included D1 Capital Partners, Ratan Capital Group, and JS Capital.

Judging by the fact that Clarivate Analytics Plc (NYSE:CCC) has faced declining sentiment from the aggregate hedge fund industry, it's safe to say that there was a specific group of hedge funds who were dropping their positions entirely last quarter. It's worth mentioning that Mitch Kuflik and Rob Sobel's Brahman Capital dropped the biggest stake of the 750 funds followed by Insider Monkey, valued at an estimated $89 million in stock. Alec Litowitz and Ross Laser's fund, Magnetar Capital, also cut its stock, about $73.9 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds last quarter.

Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Clarivate Analytics Plc (NYSE:CCC) but similarly valued. These stocks are Kirby Corporation (NYSE:KEX), PS Business Parks Inc (NYSE:PSB), Integra Lifesciences Holdings Corp (NASDAQ:IART), and National Fuel Gas Company (NYSE:NFG). This group of stocks' market values match CCC's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KEX,23,630317,4 PSB,14,62359,2 IART,21,165189,2 NFG,22,241410,6 Average,20,274819,3.5 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $275 million. That figure was $437 million in CCC's case. Kirby Corporation (NYSE:KEX) is the most popular stock in this table. On the other hand PS Business Parks Inc (NYSE:PSB) is the least popular one with only 14 bullish hedge fund positions. Clarivate Analytics Plc (NYSE:CCC) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Hedge funds were also right about betting on CCC as the stock returned 9.7% during the third quarter and outperformed the market. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.

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