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Is The Liberty SiriusXM Group (LSXMA) A Good Stock To Buy?

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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 867 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 September 30th. In this article we look at what those investors think of The Liberty SiriusXM Group (NASDAQ:LSXMA).

Is LSXMA a good stock to buy now? Hedge funds were betting on the stock. The number of long hedge fund bets advanced by 1 recently. The Liberty SiriusXM Group (NASDAQ:LSXMA) was in 44 hedge funds' portfolios at the end of September. The all time high for this statistic is 50. Our calculations also showed that LSXMA isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 43 hedge funds in our database with LSXMA holdings at the end of June.

Seth Klarman of Baupost Group
Seth Klarman of Baupost Group

Seth Klarman of Baupost Group

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. Keeping this in mind let's view the key hedge fund action encompassing The Liberty SiriusXM Group (NASDAQ:LSXMA).

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

At Q3's end, a total of 44 of the hedge funds tracked by Insider Monkey were long this stock, a change of 2% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards LSXMA over the last 25 quarters. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

Is LSXMA A Good Stock To Buy?
Is LSXMA A Good Stock To Buy?

Among these funds, Berkshire Hathaway held the most valuable stake in The Liberty SiriusXM Group (NASDAQ:LSXMA), which was worth $701 million at the end of the third quarter. On the second spot was Baupost Group which amassed $207.5 million worth of shares. D E Shaw, FPR Partners, and Corvex Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Isomer Partners allocated the biggest weight to The Liberty SiriusXM Group (NASDAQ:LSXMA), around 4.48% of its 13F portfolio. Steel Canyon Capital is also relatively very bullish on the stock, designating 3.75 percent of its 13F equity portfolio to LSXMA.

Now, specific money managers have been driving this bullishness. Senator Investment Group, managed by Doug Silverman and Alexander Klabin, created the biggest position in The Liberty SiriusXM Group (NASDAQ:LSXMA). Senator Investment Group had $47.9 million invested in the company at the end of the quarter. Benjamin A. Smith's Laurion Capital Management also initiated a $31.4 million position during the quarter. The other funds with new positions in the stock are Louis Bacon's Moore Global Investments, Jinghua Yan's TwinBeech Capital, and Greg Eisner's Engineers Gate Manager.

Let's now take a look at hedge fund activity in other stocks similar to The Liberty SiriusXM Group (NASDAQ:LSXMA). These stocks are Textron Inc. (NYSE:TXT), Brown & Brown, Inc. (NYSE:BRO), Omnicom Group Inc. (NYSE:OMC), Confluent Inc. (NASDAQ:CFLT), argenx SE (NASDAQ:ARGX), Novavax, Inc. (NASDAQ:NVAX), and Royalty Pharma Plc (NASDAQ:RPRX). This group of stocks' market values are closest to LSXMA's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TXT,31,1137475,9 BRO,31,1392156,5 OMC,25,396360,-5 CFLT,27,1319263,27 ARGX,28,1364285,1 NVAX,35,786706,-2 RPRX,20,1961787,0 Average,28.1,1194005,5 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 28.1 hedge funds with bullish positions and the average amount invested in these stocks was $1194 million. That figure was $1901 million in LSXMA's case. Novavax, Inc. (NASDAQ:NVAX) is the most popular stock in this table. On the other hand Royalty Pharma Plc (NASDAQ:RPRX) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks The Liberty SiriusXM Group (NASDAQ:LSXMA) is more popular among hedge funds. Our overall hedge fund sentiment score for LSXMA is 82.4. 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. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately LSXMA wasn't nearly as popular as these 5 stocks and hedge funds that were betting on LSXMA were disappointed as the stock returned 3.5% since the end of the third quarter (through 11/30) 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 since 2019.

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