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Here is What Hedge Funds Think About Citrix Systems, Inc. (CTXS)

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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 Citrix Systems, Inc. (NASDAQ:CTXS).

Citrix Systems, Inc. (NASDAQ:CTXS) has experienced an increase in activity from the world's largest hedge funds lately. Citrix Systems, Inc. (NASDAQ:CTXS) was in 23 hedge funds' portfolios at the end of June. The all time high for this statistic is 45. Our calculations also showed that CTXS isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

According to most traders, hedge funds are perceived as worthless, old investment vehicles of yesteryear. While there are over 8000 funds in operation at the moment, Our researchers look at the aristocrats of this club, approximately 850 funds. These investment experts direct most of all hedge funds' total capital, and by keeping an eye on their unrivaled investments, Insider Monkey has formulated a few investment strategies that have historically outperformed Mr. Market. Insider Monkey's flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

William Von Mueffling - Cantillon Capital Management
William Von Mueffling - Cantillon Capital Management

William Von Mueffling of Cantillon Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to review the latest hedge fund action surrounding Citrix Systems, Inc. (NASDAQ:CTXS).

Do Hedge Funds Think CTXS Is A Good Stock To Buy Now?

Heading into the third quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 15% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards CTXS over the last 24 quarters. With hedge funds' capital changing hands, there exists an "upper tier" of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).

According to Insider Monkey's hedge fund database, William von Mueffling's Cantillon Capital Management has the most valuable position in Citrix Systems, Inc. (NASDAQ:CTXS), worth close to $307.2 million, comprising 2.1% of its total 13F portfolio. Coming in second is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding a $124.9 million position; 0.2% of its 13F portfolio is allocated to the stock. Other professional money managers that are bullish include D. E. Shaw's D E Shaw, Ken Griffin's Citadel Investment Group and Israel Englander's Millennium Management. In terms of the portfolio weights assigned to each position Cantillon Capital Management allocated the biggest weight to Citrix Systems, Inc. (NASDAQ:CTXS), around 2.07% of its 13F portfolio. Mondrian Capital is also relatively very bullish on the stock, setting aside 1.68 percent of its 13F equity portfolio to CTXS.

As industrywide interest jumped, key money managers have been driving this bullishness. D E Shaw, managed by D. E. Shaw, initiated the most valuable position in Citrix Systems, Inc. (NASDAQ:CTXS). D E Shaw had $67.3 million invested in the company at the end of the quarter. Ray Dalio's Bridgewater Associates also made a $5.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Brandon Haley's Holocene Advisors, Jinghua Yan's TwinBeech Capital, and Karim Abbadi and Edward McBride's Centiva Capital.

Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Citrix Systems, Inc. (NASDAQ:CTXS) but similarly valued. We will take a look at UDR, Inc. (NYSE:UDR), Fair Isaac Corporation (NYSE:FICO), Apollo Global Management Inc (NYSE:APO), Shaw Communications Inc (NYSE:SJR), News Corp (NASDAQ:NWS), Loews Corporation (NYSE:L), and Solaredge Technologies Inc (NASDAQ:SEDG). All of these stocks' market caps are similar to CTXS's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UDR,24,251040,-6 FICO,28,1224920,1 APO,37,2617533,-7 SJR,23,697694,2 NWS,19,178722,-2 L,28,212289,7 SEDG,37,675586,5 Average,28,836826,0 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $837 million. That figure was $669 million in CTXS's case. Apollo Global Management Inc (NYSE:APO) is the most popular stock in this table. On the other hand News Corp (NASDAQ:NWS) is the least popular one with only 19 bullish hedge fund positions. Citrix Systems, Inc. (NASDAQ:CTXS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CTXS is 34.4. 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. 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 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 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately CTXS wasn't nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CTXS investors were disappointed as the stock returned -14.5% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.

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