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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 873 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 June 30th. In this article we look at what those investors think of Aptiv PLC (NYSE:APTV).
Is Aptiv PLC (NYSE:APTV) an excellent investment now? Investors who are in the know were getting less bullish. The number of bullish hedge fund bets fell by 10 recently. Aptiv PLC (NYSE:APTV) was in 40 hedge funds' portfolios at the end of June. The all time high for this statistic is 50. Our calculations also showed that APTV isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Dan Loeb of Third Point
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Do Hedge Funds Think APTV Is A Good Stock To Buy Now?
At Q2's end, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of -20% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards APTV over the last 24 quarters. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Ian Simm's Impax Asset Management has the number one position in Aptiv PLC (NYSE:APTV), worth close to $518.7 million, amounting to 2.3% of its total 13F portfolio. The second largest stake is held by Third Point, managed by Dan Loeb, which holds a $204.5 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism consist of Ken Griffin's Citadel Investment Group, Brian Ashford-Russell and Tim Woolley's Polar Capital and Barry Dargan's Intermede Investment Partners. In terms of the portfolio weights assigned to each position Caxton Associates LP allocated the biggest weight to Aptiv PLC (NYSE:APTV), around 7.07% of its 13F portfolio. Engine No. 1 LLC is also relatively very bullish on the stock, setting aside 6.57 percent of its 13F equity portfolio to APTV.
Judging by the fact that Aptiv PLC (NYSE:APTV) has witnessed declining sentiment from the aggregate hedge fund industry, it's easy to see that there is a sect of hedge funds that elected to cut their full holdings by the end of the second quarter. Intriguingly, Steve Cohen's Point72 Asset Management said goodbye to the biggest position of the 750 funds watched by Insider Monkey, valued at an estimated $16 million in stock. Glen Kacher's fund, Light Street Capital, also dropped its stock, about $9.7 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 10 funds by the end of the second quarter.
Let's now take a look at hedge fund activity in other stocks similar to Aptiv PLC (NYSE:APTV). We will take a look at Centene Corporation (NYSE:CNC), Digital Realty Trust, Inc. (NYSE:DLR), American Electric Power Company, Inc. (NASDAQ:AEP), Carrier Global Corporation (NYSE:CARR), Synopsys, Inc. (NASDAQ:SNPS), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC), and Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA). This group of stocks' market values match APTV's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CNC,49,3240123,-4 DLR,30,424723,8 AEP,29,726241,-3 CARR,46,1853633,-5 SNPS,41,2057258,7 ERIC,19,228837,0 BBVA,9,274525,2 Average,31.9,1257906,0.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.9 hedge funds with bullish positions and the average amount invested in these stocks was $1258 million. That figure was $1678 million in APTV's case. Centene Corporation (NYSE:CNC) is the most popular stock in this table. On the other hand Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) is the least popular one with only 9 bullish hedge fund positions. Aptiv PLC (NYSE:APTV) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for APTV is 57.8. 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 21.8% in 2021 through October 11th and still beat the market by 4.4 percentage points. Hedge funds were also right about betting on APTV as the stock returned 1.8% since the end of Q2 (through 10/11) 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.