The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 28. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Mylan N.V. (NASDAQ:MYL).
Hedge fund interest in Mylan N.V. (NASDAQ:MYL) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Zendesk Inc (NYSE:ZEN), Torchmark Corporation (NYSE:TMK), and Zscaler, Inc. (NASDAQ:ZS) to gather more data points. Our calculations also showed that MYL isn't among the 30 most popular stocks among hedge funds (view the video below). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
If you'd ask most market participants, hedge funds are seen as worthless, old financial vehicles of the past. While there are over 8000 funds in operation at present, Our experts hone in on the elite of this group, approximately 750 funds. These money managers administer the lion's share of all hedge funds' total capital, and by monitoring their first-class stock picks, Insider Monkey has identified many investment strategies that have historically outpaced the S&P 500 index. Insider Monkey's flagship hedge fund strategy outpaced the S&P 500 index by around 5 percentage points per annum since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .
Unlike some fund managers who are betting on Dow reaching 40000 in a year, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We're going to go over the recent hedge fund action regarding Mylan N.V. (NASDAQ:MYL).
What does smart money think about Mylan N.V. (NASDAQ:MYL)?
At Q2's end, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the first quarter of 2019. The graph below displays the number of hedge funds with bullish position in MYL over the last 16 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Richard S. Pzena's Pzena Investment Management has the most valuable position in Mylan N.V. (NASDAQ:MYL), worth close to $401.8 million, corresponding to 2.1% of its total 13F portfolio. On Pzena Investment Management's heels is AQR Capital Management, managed by Cliff Asness, which holds a $213.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism consist of John Paulson's Paulson & Co, Robert Rodriguez and Steven Romick's First Pacific Advisors LLC and Stephen DuBois's Camber Capital Management.
Due to the fact that Mylan N.V. (NASDAQ:MYL) has experienced a decline in interest from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds who sold off their entire stakes by the end of the second quarter. Interestingly, Andreas Halvorsen's Viking Global cut the biggest investment of the 750 funds followed by Insider Monkey, comprising an estimated $101.6 million in stock, and David Rosen's Rubric Capital Management was right behind this move, as the fund cut about $48.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now take a look at hedge fund activity in other stocks similar to Mylan N.V. (NASDAQ:MYL). These stocks are Zendesk Inc (NYSE:ZEN), Torchmark Corporation (NYSE:TMK), Zscaler, Inc. (NASDAQ:ZS), and Enel Americas S.A. (NYSE:ENIA). This group of stocks' market valuations match MYL's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ZEN,50,1843391,-3 TMK,19,808569,-2 ZS,25,325854,6 ENIA,11,204387,-3 Average,26.25,795550,-0.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $796 million. That figure was $1601 million in MYL's case. Zendesk Inc (NYSE:ZEN) is the most popular stock in this table. On the other hand Enel Americas S.A. (NYSE:ENIA) is the least popular one with only 11 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Hedge funds were also right about betting on MYL, though not to the same extent, as the stock returned 3.9% during the third quarter and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.
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