The latest 13F reporting period has come and gone, and 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, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Atlassian Corporation Plc (NASDAQ:TEAM) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Atlassian Corporation Plc (NASDAQ:TEAM) has seen a decrease in enthusiasm from smart money in recent months. Atlassian Corporation Plc (NASDAQ:TEAM) was in 60 hedge funds’ portfolios at the end of September. The all time high for this statistic is 69. Our calculations also showed that TEAM isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Chase Coleman of Tiger Global
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 we’re going to take a glance at the latest hedge fund action encompassing Atlassian Corporation Plc (NASDAQ:TEAM).
Do Hedge Funds Think TEAM Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 60 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -6% from the second quarter of 2021. By comparison, 48 hedge funds held shares or bullish call options in TEAM a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Atlassian Corporation Plc (NASDAQ:TEAM) was held by Renaissance Technologies, which reported holding $1244.2 million worth of stock at the end of September. It was followed by Tiger Global Management LLC with a $965 million position. Other investors bullish on the company included Alkeon Capital Management, Alkeon Capital Management, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Strategy Capital allocated the biggest weight to Atlassian Corporation Plc (NASDAQ:TEAM), around 19.56% of its 13F portfolio. One01 Capital is also relatively very bullish on the stock, designating 11.8 percent of its 13F equity portfolio to TEAM.
Seeing as Atlassian Corporation Plc (NASDAQ:TEAM) has experienced bearish sentiment from hedge fund managers, it’s safe to say that there is a sect of fund managers who were dropping their positions entirely last quarter. Intriguingly, Andreas Halvorsen’s Viking Global dropped the biggest investment of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $134.6 million in stock. Zach Schreiber’s fund, Point State Capital, also dumped its stock, about $87.7 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 4 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Atlassian Corporation Plc (NASDAQ:TEAM) but similarly valued. These stocks are Booking Holdings Inc. (NASDAQ:BKNG), GlaxoSmithKline plc (NYSE:GSK), Lockheed Martin Corporation (NYSE:LMT), Infosys Limited (NYSE:INFY), Prologis Inc (NYSE:PLD), Zoetis Inc (NYSE:ZTS), and BP plc (NYSE:BP). This group of stocks’ market values resemble TEAM’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BKNG | 96 | 8429836 | -4 |
| GSK | 31 | 1658987 | 3 |
| LMT | 51 | 1284495 | -7 |
| INFY | 29 | 2473668 | 7 |
| PLD | 32 | 483464 | -8 |
| ZTS | 58 | 2713394 | 0 |
| BP | 29 | 1053236 | -1 |
| Average | 46.6 | 2585297 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 46.6 hedge funds with bullish positions and the average amount invested in these stocks was $2585 million. That figure was $6079 million in TEAM’s case. Booking Holdings Inc. (NASDAQ:BKNG) is the most popular stock in this table. On the other hand Infosys Limited (NYSE:INFY) is the least popular one with only 29 bullish hedge fund positions. Atlassian Corporation Plc (NASDAQ:TEAM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TEAM is 50.2. 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, TEAM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TEAM were disappointed as the stock returned -17.1% 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.
Follow Atlassian Corp (NASDAQ:TEAM)
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Disclosure: None. This article was originally published at Insider Monkey.
