Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of PTC Inc (NASDAQ:PTC) based on that data and determine whether they were really smart about the stock.
PTC Inc (NASDAQ:PTC) was in 37 hedge funds’ portfolios at the end of September. The all time high for this statistic is 46. PTC investors should pay attention to an increase in enthusiasm from smart money lately. There were 31 hedge funds in our database with PTC positions at the end of the second quarter. Our calculations also showed that PTC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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. With all of this in mind let’s review the new hedge fund action encompassing PTC Inc (NASDAQ:PTC).
David S. Winter of 40 North Management
Do Hedge Funds Think PTC Is A Good Stock To Buy Now?
At the end of September, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in PTC over the last 25 quarters. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
More specifically, Impax Asset Management was the largest shareholder of PTC Inc (NASDAQ:PTC), with a stake worth $481.2 million reported as of the end of September. Trailing Impax Asset Management was 40 North Management, which amassed a stake valued at $382.4 million. Alkeon Capital Management, Praesidium Investment Management Company, and Two Creeks Capital Management 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 40 North Management allocated the biggest weight to PTC Inc (NASDAQ:PTC), around 11.79% of its 13F portfolio. StackLine Partners is also relatively very bullish on the stock, dishing out 11.5 percent of its 13F equity portfolio to PTC.
With a general bullishness amongst the heavyweights, some big names have jumped into PTC Inc (NASDAQ:PTC) headfirst. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the biggest position in PTC Inc (NASDAQ:PTC). Marshall Wace LLP had $49.3 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $41.6 million position during the quarter. The following funds were also among the new PTC investors: D. E. Shaw’s D E Shaw, Michael Lowenstein’s Kensico Capital, and Ken Griffin’s Citadel Investment Group.
Let’s also examine hedge fund activity in other stocks similar to PTC Inc (NASDAQ:PTC). We will take a look at Cardinal Health, Inc. (NYSE:CAH), Clarivate Plc (NYSE:CLVT), Alliant Energy Corporation (NASDAQ:LNT), Zendesk Inc (NYSE:ZEN), News Corp (NASDAQ:NWSA), Loews Corporation (NYSE:L), and Solaredge Technologies Inc (NASDAQ:SEDG). This group of stocks’ market valuations are closest to PTC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CAH | 36 | 664971 | -4 |
| CLVT | 32 | 4723546 | -9 |
| LNT | 17 | 76693 | 1 |
| ZEN | 53 | 1557704 | 1 |
| NWSA | 34 | 737689 | -3 |
| L | 27 | 175121 | -1 |
| SEDG | 33 | 594467 | -4 |
| Average | 33.1 | 1218599 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 33.1 hedge funds with bullish positions and the average amount invested in these stocks was $1219 million. That figure was $1820 million in PTC’s case. Zendesk Inc (NYSE:ZEN) is the most popular stock in this table. On the other hand Alliant Energy Corporation (NASDAQ:LNT) is the least popular one with only 17 bullish hedge fund positions. PTC Inc (NASDAQ:PTC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PTC is 61.9. 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. 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 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately, PTC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PTC were disappointed as the stock returned -2.9% since the end of September (through 1/31) 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 all of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
