The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Pampa Energia S.A. (NYSE:PAM).
Pampa Energia S.A. (NYSE:PAM) was in 12 hedge funds' portfolios at the end of the second quarter of 2019. PAM has experienced a decrease in support from the world's most elite money managers of late. There were 21 hedge funds in our database with PAM positions at the end of the previous quarter. Our calculations also showed that PAM 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.
To most shareholders, hedge funds are viewed as unimportant, old financial vehicles of yesteryear. While there are greater than 8000 funds trading at present, We hone in on the masters of this club, around 750 funds. These money managers control the majority of the hedge fund industry's total capital, and by paying attention to their inimitable stock picks, Insider Monkey has spotted various investment strategies that have historically beaten Mr. Market. Insider Monkey's flagship hedge fund strategy outstripped the S&P 500 index by around 5 percentage points per year 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 .
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We're going to view the new hedge fund action encompassing Pampa Energia S.A. (NYSE:PAM).
How have hedgies been trading Pampa Energia S.A. (NYSE:PAM)?
At Q2's end, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -43% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in PAM over the last 16 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Point State Capital, managed by Zach Schreiber, holds the largest position in Pampa Energia S.A. (NYSE:PAM). Point State Capital has a $175.2 million position in the stock, comprising 3.7% of its 13F portfolio. The second is OZ Management, with a $65.5 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish comprise Jody LaNasa's Serengeti Asset Management, Howard Marks's Oaktree Capital Management and James Dondero's Highland Capital Management.
Due to the fact that Pampa Energia S.A. (NYSE:PAM) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there is a sect of money managers that decided to sell off their full holdings last quarter. Intriguingly, Ben Levine, Andrew Manuel and Stefan Renold's LMR Partners dropped the biggest investment of all the hedgies watched by Insider Monkey, worth about $5.5 million in stock, and Sander Gerber's Hudson Bay Capital Management was right behind this move, as the fund dumped about $3.7 million worth. These moves are important to note, as total hedge fund interest fell by 9 funds last quarter.
Let's go over hedge fund activity in other stocks similar to Pampa Energia S.A. (NYSE:PAM). These stocks are South State Corporation (NASDAQ:SSB), Main Street Capital Corporation (NYSE:MAIN), ManTech International Corporation (NASDAQ:MANT), and Green Dot Corporation (NYSE:GDOT). This group of stocks' market caps match PAM's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SSB,14,19985,1 MAIN,4,7969,0 MANT,11,11360,-1 GDOT,18,242981,-9 Average,11.75,70574,-2.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $308 million in PAM's case. Green Dot Corporation (NYSE:GDOT) is the most popular stock in this table. On the other hand Main Street Capital Corporation (NYSE:MAIN) is the least popular one with only 4 bullish hedge fund positions. Pampa Energia S.A. (NYSE:PAM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. 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. Unfortunately PAM wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PAM were disappointed as the stock returned -49.9% during the third 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 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.