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. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. In this article we look at what those investors think of Atlassian Corporation Plc (NASDAQ:TEAM).
Is Atlassian Corporation Plc (NASDAQ:TEAM) a first-rate investment now? The smart money is in a pessimistic mood. The number of long hedge fund positions retreated by 3 in recent months. Our calculations also showed that TEAM 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 the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 72% since March 2017 and outperformed the S&P 500 ETFs by more than 44 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_26088" align="aligncenter" width="400"] Chase Coleman of Tiger Global[/caption]
At Insider Monkey 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 checked out this European marijuana stock pitch. Also, we are still not out of the woods in terms of the coronavirus pandemic. So, we checked out this analyst’s “corona catalyst plays“. 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 latest hedge fund action surrounding Atlassian Corporation Plc (NASDAQ:TEAM).
How have hedgies been trading Atlassian Corporation Plc (NASDAQ:TEAM)?
At Q1's end, a total of 59 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TEAM over the last 18 quarters. So, let's check out 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, Renaissance Technologies, founded by Jim Simons, holds the most valuable position in Atlassian Corporation Plc (NASDAQ:TEAM). Renaissance Technologies has a $883.1 million position in the stock, comprising 0.9% of its 13F portfolio. Coming in second is Chase Coleman of Tiger Global Management LLC, with a $207.3 million position; 1.2% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions encompass Robert Pitts's Steadfast Capital Management, Lone Pine Capital and Rajiv Jain's GQG Partners. In terms of the portfolio weights assigned to each position Strategy Capital allocated the biggest weight to Atlassian Corporation Plc (NASDAQ:TEAM), around 19.86% of its 13F portfolio. Center Lake Capital is also relatively very bullish on the stock, designating 10.01 percent of its 13F equity portfolio to TEAM.
Judging by the fact that Atlassian Corporation Plc (NASDAQ:TEAM) has experienced falling interest from the aggregate hedge fund industry, it's safe to say that there were a few hedgies who sold off their full holdings heading into Q4. Interestingly, Steve Cohen's Point72 Asset Management cut the biggest investment of all the hedgies watched by Insider Monkey, valued at about $97.7 million in stock. Gabriel Plotkin's fund, Melvin Capital Management, also dropped its stock, about $48.1 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 3 funds heading into Q4.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Atlassian Corporation Plc (NASDAQ:TEAM) but similarly valued. These stocks are Thomson Reuters Corporation (NYSE:TRI), UBS Group AG (NYSE:UBS), ConocoPhillips (NYSE:COP), and Roper Technologies Inc. (NYSE:ROP). This group of stocks' market values are similar to TEAM's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRI,22,330343,1 UBS,15,211262,1 COP,54,961915,-8 ROP,38,1015909,-2 Average,32.25,629857,-2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.25 hedge funds with bullish positions and the average amount invested in these stocks was $630 million. That figure was $2586 million in TEAM's case. ConocoPhillips (NYSE:COP) is the most popular stock in this table. On the other hand UBS Group AG (NYSE:UBS) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Atlassian Corporation Plc (NASDAQ:TEAM) is more popular among hedge funds. 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 returned 7.9% in 2020 through May 22nd but still managed to beat the market by 15.6 percentage points. Hedge funds were also right about betting on TEAM as the stock returned 33% so far in Q2 (through May 22nd) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.