A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Calix Inc (NYSE:CALX).
Calix Inc (NYSE:CALX) has seen a decrease in hedge fund sentiment of late. Calix Inc (NYSE:CALX) was in 23 hedge funds’ portfolios at the end of June. The all time high for this statistic is 31. Our calculations also showed that CALX isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Jonathan Barrett of Luminus 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. Keeping this in mind let’s review the latest hedge fund action regarding Calix Inc (NYSE:CALX).
Do Hedge Funds Think CALX Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -26% from the first quarter of 2020. On the other hand, there were a total of 17 hedge funds with a bullish position in CALX 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, Renaissance Technologies held the most valuable stake in Calix Inc (NYSE:CALX), which was worth $98.3 million at the end of the second quarter. On the second spot was Driehaus Capital which amassed $86.4 million worth of shares. G2 Investment Partners Management, Citadel Investment Group, and Voce 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 Voce Capital allocated the biggest weight to Calix Inc (NYSE:CALX), around 5.95% of its 13F portfolio. G2 Investment Partners Management is also relatively very bullish on the stock, setting aside 2.98 percent of its 13F equity portfolio to CALX.
Judging by the fact that Calix Inc (NYSE:CALX) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who were dropping their full holdings last quarter. Intriguingly, Mike Masters’s Masters Capital Management said goodbye to the largest investment of the 750 funds monitored by Insider Monkey, comprising about $17.3 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also dumped its stock, about $6.9 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 8 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to Calix Inc (NYSE:CALX). We will take a look at Utz Brands Inc (NYSE:UTZ), PTC Therapeutics, Inc. (NASDAQ:PTCT), ABM Industries, Inc. (NYSE:ABM), Yelp Inc (NYSE:YELP), Renewable Energy Group Inc (NASDAQ:REGI), Avista Corp (NYSE:AVA), and Greif, Inc. (NYSE:GEF). This group of stocks’ market caps match CALX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UTZ | 14 | 76181 | 1 |
| PTCT | 23 | 262278 | -1 |
| ABM | 23 | 76336 | 6 |
| YELP | 27 | 544837 | 7 |
| REGI | 17 | 73707 | -4 |
| AVA | 17 | 44746 | 2 |
| GEF | 13 | 139667 | 0 |
| Average | 19.1 | 173965 | 1.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.1 hedge funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $290 million in CALX’s case. Yelp Inc (NYSE:YELP) is the most popular stock in this table. On the other hand Greif, Inc. (NYSE:GEF) is the least popular one with only 13 bullish hedge fund positions. Calix Inc (NYSE:CALX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CALX is 55. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Hedge funds were also right about betting on CALX as the stock returned 13.3% since the end of Q2 (through 10/22) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
