The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Barclays PLC (ADR) (NYSE:BCS).
Barclays PLC (ADR) (NYSE:BCS) was in 15 hedge funds’ portfolios at the end of September. BCS has experienced an increase in enthusiasm from smart money of late. There were 13 hedge funds in our database with BCS holdings at the end of the previous quarter. At the end of this article we will also compare BCS to other stocks, including Rio Tinto plc (ADR) (NYSE:RIO), Morgan Stanley (NYSE:MS), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) to get a better sense of its popularity.
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To the average investor, there are a multitude of metrics stock traders use to value their holdings. A couple of the best metrics are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the elite money managers can outpace their index-focused peers by a solid margin (see the details here).
Keeping this in mind, let’s take a gander at the fresh action regarding Barclays PLC (ADR) (NYSE:BCS).
What does the smart money think about Barclays PLC (ADR) (NYSE:BCS)?
Heading into Q4, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 15% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ken Fisher’s Fisher Asset Management has the number one position in Barclays PLC (ADR) (NYSE:BCS), worth close to $289.5 million, corresponding to 0.6% of its total 13F portfolio. On Fisher Asset Management’s heels is Carlson Capital, managed by Clint Carlson, which holds a $11.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions contain Matthew Hulsizer’s PEAK6 Capital Management and John Thiessen’s Vertex One Asset Management.
Consequently, some big names have jumped into Barclays PLC (ADR) (NYSE:BCS) headfirst. Vertex One Asset Management established the biggest position in Barclays PLC (ADR) (NYSE:BCS), having $3.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $1.8 million investment in the stock during the quarter. The other funds with brand new BCS positions are Richard Chilton’s Chilton Investment Company, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Peter Muller’s PDT Partners.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Barclays PLC (ADR) (NYSE:BCS) but similarly valued. These stocks are Rio Tinto plc (ADR) (NYSE:RIO), Morgan Stanley (NYSE:MS), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), and Kinder Morgan Inc (NYSE:KMI). This group of stocks’ market caps are similar to BCS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RIO | 19 | 146726 | 1 |
| MS | 57 | 2391811 | 9 |
| VRX | 88 | 17733508 | -10 |
| KMI | 72 | 1826860 | 8 |
As you can see these stocks had an average of 59 hedge funds with bullish positions and the average amount invested in these stocks was $5.53 million, versus $325 million in BCS’s case. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is the most popular stock in this table with 88 long positions. On the other hand, Rio Tinto plc (ADR) (NYSE:RIO) is the least popular one with only 19 funds holding shares. Compared to these stocks, Barclays PLC (ADR) (NYSE:BCS) is even less popular than RIO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.
