Insider Monkey finished processing more than 738 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2019. What do these smart investors think about Mylan N.V. (NASDAQ:MYL)?
Mylan N.V. (NASDAQ:MYL) was in 30 hedge funds' portfolios at the end of the first quarter of 2019. MYL investors should pay attention to a decrease in activity from the world's largest hedge funds in recent months. There were 42 hedge funds in our database with MYL holdings at the end of the previous quarter. Our calculations also showed that myl isn't among the 30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's go over the latest hedge fund action surrounding Mylan N.V. (NASDAQ:MYL).
What have hedge funds been doing with Mylan N.V. (NASDAQ:MYL)?
At the end of the first quarter, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -29% from the fourth quarter of 2018. On the other hand, there were a total of 44 hedge funds with a bullish position in MYL a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
The largest stake in Mylan N.V. (NASDAQ:MYL) was held by Pzena Investment Management, which reported holding $595.9 million worth of stock at the end of March. It was followed by Paulson & Co with a $311.9 million position. Other investors bullish on the company included AQR Capital Management, First Pacific Advisors LLC, and Camber Capital Management.
Seeing as Mylan N.V. (NASDAQ:MYL) has witnessed a decline in interest from the aggregate hedge fund industry, we can see that there were a few money managers that slashed their positions entirely last quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital cut the largest stake of all the hedgies monitored by Insider Monkey, valued at an estimated $43.5 million in call options. Stephen DuBois's fund, Camber Capital Management, also sold off its call options, about $27.4 million worth. These moves are important to note, as total hedge fund interest dropped by 12 funds last quarter.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Mylan N.V. (NASDAQ:MYL) but similarly valued. We will take a look at Snap Inc. (NYSE:SNAP), Maxim Integrated, Inc. (NASDAQ:MXIM), Nasdaq, Inc. (NASDAQ:NDAQ), and Arthur J. Gallagher & Co. (NYSE:AJG). This group of stocks' market caps are closest to MYL's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SNAP,31,1074871,14 MXIM,27,330978,3 NDAQ,16,83129,-5 AJG,28,321793,6 Average,25.5,452693,4.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.5 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $2362 million in MYL's case. Snap Inc. (NYSE:SNAP) is the most popular stock in this table. On the other hand Nasdaq, Inc. (NASDAQ:NDAQ) is the least popular one with only 16 bullish hedge fund positions. Mylan N.V. (NASDAQ:MYL) 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 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Unfortunately MYL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on MYL were disappointed as the stock returned -39.3% during the same period 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 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.