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 Bristol Myers Squibb Company (NYSE:BMY) based on that data and determine whether they were really smart about the stock.
Bristol Myers Squibb Company (NYSE:BMY) investors should pay attention to an increase in hedge fund sentiment of late. Bristol Myers Squibb Company (NYSE:BMY) was in 74 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 136. There were 73 hedge funds in our database with BMY holdings at the end of June. Our calculations also showed that BMY 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. Now we’re going to take a peek at the recent hedge fund action encompassing Bristol Myers Squibb Company (NYSE:BMY).
David Siegel of Two Sigma Advisors
Do Hedge Funds Think BMY Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 74 of the hedge funds tracked by Insider Monkey were long this stock, a change of 1% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in BMY over the last 25 quarters. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
The largest stake in Bristol Myers Squibb Company (NYSE:BMY) was held by Berkshire Hathaway, which reported holding $1304.5 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $421.3 million position. Other investors bullish on the company included Viking Global, Two Sigma Advisors, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Birchview Capital allocated the biggest weight to Bristol Myers Squibb Company (NYSE:BMY), around 32.05% of its 13F portfolio. Healthcor Management LP is also relatively very bullish on the stock, designating 9.15 percent of its 13F equity portfolio to BMY.
As one would reasonably expect, key money managers were leading the bulls’ herd. Point72 Asset Management, managed by Steve Cohen, established the most outsized position in Bristol Myers Squibb Company (NYSE:BMY). Point72 Asset Management had $39.4 million invested in the company at the end of the quarter. Christopher James’s Partner Fund Management also made a $36.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Doron Breen and Mori Arkin’s Sphera Global Healthcare Fund, Mike Masters’s Masters Capital Management, and Steve Cohen’s Point72 Asset Management.
Let’s also examine hedge fund activity in other stocks similar to Bristol Myers Squibb Company (NYSE:BMY). These stocks are Starbucks Corporation (NASDAQ:SBUX), Raytheon Technologies Corp (NYSE:RTX), The Boeing Company (NYSE:BA), Union Pacific Corporation (NYSE:UNP), BlackRock, Inc. (NYSE:BLK), The Goldman Sachs Group, Inc. (NYSE:GS), and TotalEnergies SE (NYSE:TTE). All of these stocks’ market caps are closest to BMY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SBUX | 58 | 4807317 | -5 |
| RTX | 48 | 2259405 | -5 |
| BA | 50 | 1431242 | -9 |
| UNP | 63 | 4886422 | -6 |
| BLK | 44 | 1085328 | -3 |
| GS | 74 | 5451988 | 13 |
| TTE | 16 | 1398818 | 1 |
| Average | 50.4 | 3045789 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 50.4 hedge funds with bullish positions and the average amount invested in these stocks was $3046 million. That figure was $4759 million in BMY’s case. Goldman Sachs Group, Inc. (NYSE:GS) is the most popular stock in this table. On the other hand TotalEnergies SE (NYSE:TTE) is the least popular one with only 16 bullish hedge fund positions. Bristol Myers Squibb Company (NYSE:BMY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BMY is 72.3. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on BMY as the stock returned 10.6% since the end of Q3 (through 1/31) 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.
