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The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on March 31st, about a week after the S&P 500 Index bottomed. We at Insider Monkey have made an extensive database of more than 821 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Grupo Televisa SAB (NYSE:TV) based on those filings.
Hedge fund interest in Grupo Televisa SAB (NYSE:TV) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Mirati Therapeutics, Inc. (NASDAQ:MRTX), Cabot Microelectronics Corporation (NASDAQ:CCMP), and The Wendy's Company (NASDAQ:WEN) to gather more data points. Our calculations also showed that TV isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In today’s marketplace there are a large number of signals stock traders employ to evaluate stocks. A couple of the less known signals are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can outclass their index-focused peers by a superb amount (see the details here).
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We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we're going to analyze the new hedge fund action regarding Grupo Televisa SAB (NYSE:TV).
How are hedge funds trading Grupo Televisa SAB (NYSE:TV)?
At the end of the first quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. By comparison, 16 hedge funds held shares or bullish call options in TV a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, FPR Partners was the largest shareholder of Grupo Televisa SAB (NYSE:TV), with a stake worth $185.1 million reported as of the end of September. Trailing FPR Partners was Bill & Melinda Gates Foundation Trust, which amassed a stake valued at $97.9 million. Renaissance Technologies, MIG Capital, and Intermede Investment Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position FPR Partners allocated the biggest weight to Grupo Televisa SAB (NYSE:TV), around 7.61% of its 13F portfolio. Steel Canyon Capital is also relatively very bullish on the stock, earmarking 6.2 percent of its 13F equity portfolio to TV.
Seeing as Grupo Televisa SAB (NYSE:TV) has witnessed a decline in interest from the entirety of the hedge funds we track, it's easy to see that there lies a certain "tier" of money managers that decided to sell off their positions entirely last quarter. It's worth mentioning that Ken Griffin's Citadel Investment Group dropped the biggest position of the "upper crust" of funds monitored by Insider Monkey, totaling about $2.3 million in stock. Minhua Zhang's fund, Weld Capital Management, also dropped its stock, about $0.7 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks similar to Grupo Televisa SAB (NYSE:TV). We will take a look at Mirati Therapeutics, Inc. (NASDAQ:MRTX), Cabot Microelectronics Corporation (NASDAQ:CCMP), The Wendy's Company (NASDAQ:WEN), and DXC Technology Company (NYSE:DXC). This group of stocks' market caps match TV's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MRTX,33,1122981,1 CCMP,16,232320,-8 WEN,35,706422,7 DXC,41,382695,-6 Average,31.25,611105,-1.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.25 hedge funds with bullish positions and the average amount invested in these stocks was $611 million. That figure was $482 million in TV's case. DXC Technology Company (NYSE:DXC) is the most popular stock in this table. On the other hand Cabot Microelectronics Corporation (NASDAQ:CCMP) is the least popular one with only 16 bullish hedge fund positions. Grupo Televisa SAB (NYSE:TV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd and surpassed the market by 15.9 percentage points. Unfortunately TV wasn't nearly as popular as these 10 stocks (hedge fund sentiment was quite bearish); TV investors were disappointed as the stock returned -1.6% during the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Disclosure: None. This article was originally published at Insider Monkey.