The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. 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 Orange S.A. (NYSE:ORAN).
Is Orange S.A. (NYSE:ORAN) worth your attention right now? Money managers are becoming more confident. The number of long hedge fund positions increased by 1 lately. Our calculations also showed that ORAN isn't among the 30 most popular stocks among hedge funds. ORAN was in 3 hedge funds' portfolios at the end of the third quarter of 2019. There were 2 hedge funds in our database with ORAN positions at the end of the previous quarter.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_256989" align="aligncenter" width="450"] Dmitry Balyasny of Balyasny Asset Managemnet[/caption]
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. We're going to take a gander at the recent hedge fund action encompassing Orange S.A. (NYSE:ORAN).
What does smart money think about Orange S.A. (NYSE:ORAN)?
At Q3's end, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the second quarter of 2019. On the other hand, there were a total of 1 hedge funds with a bullish position in ORAN a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Millennium Management held the most valuable stake in Orange S.A. (NYSE:ORAN), which was worth $1.1 million at the end of the third quarter. On the second spot was Marshall Wace which amassed $0.8 million worth of shares. Balyasny Asset Management was 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 Marshall Wace allocated the biggest weight to Orange S.A. (NYSE:ORAN), around 0.01% of its portfolio. Millennium Management is also relatively very bullish on the stock, earmarking 0.0017 percent of its 13F equity portfolio to ORAN.
As industrywide interest jumped, key hedge funds have jumped into Orange S.A. (NYSE:ORAN) headfirst. Marshall Wace, managed by Paul Marshall and Ian Wace, created the most outsized position in Orange S.A. (NYSE:ORAN). Marshall Wace had $0.8 million invested in the company at the end of the quarter. Dmitry Balyasny's Balyasny Asset Management also initiated a $0.2 million position during the quarter.
Let's go over hedge fund activity in other stocks similar to Orange S.A. (NYSE:ORAN). These stocks are Analog Devices, Inc. (NASDAQ:ADI), JD.Com Inc (NASDAQ:JD), Emerson Electric Co. (NYSE:EMR), and HCA Healthcare Inc (NYSE:HCA). All of these stocks' market caps are closest to ORAN's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ADI,43,2517774,-1 JD,54,5279009,9 EMR,37,594019,5 HCA,55,2621149,4 Average,47.25,2752988,4.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 47.25 hedge funds with bullish positions and the average amount invested in these stocks was $2753 million. That figure was $2 million in ORAN's case. HCA Healthcare Inc (NYSE:HCA) is the most popular stock in this table. On the other hand Emerson Electric Co. (NYSE:EMR) is the least popular one with only 37 bullish hedge fund positions. Compared to these stocks Orange S.A. (NYSE:ORAN) is even less popular than EMR. Our calculations showed that top 20 most popular stocks among hedge funds returned 34.7% in 2019 through November 22nd and outperformed the S&P 500 ETF (SPY) by 8.5 percentage points. A small number of hedge funds were also right about betting on ORAN, though not to the same extent, as the stock returned 5.1% during the fourth quarter (through 11/22) and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.