The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. What do these smart investors think about CACI International Inc (NYSE:CACI)?
CACI International Inc (NYSE:CACI) investors should pay attention to an increase in enthusiasm from smart money recently. CACI International Inc (NYSE:CACI) was in 26 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 34. There were 21 hedge funds in our database with CACI holdings at the end of March. Our calculations also showed that CACI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
David Harding of Winton Capital 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 take a gander at the latest hedge fund action encompassing CACI International Inc (NYSE:CACI).
Do Hedge Funds Think CACI Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 24% from the previous quarter. On the other hand, there were a total of 34 hedge funds with a bullish position in CACI a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Murray Stahl’s Horizon Asset Management has the most valuable position in CACI International Inc (NYSE:CACI), worth close to $114.1 million, corresponding to 2.3% of its total 13F portfolio. The second most bullish fund manager is Ken Griffin of Citadel Investment Group, with a $91.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism include Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Engine Capital allocated the biggest weight to CACI International Inc (NYSE:CACI), around 6.49% of its 13F portfolio. Akaris Global Partners is also relatively very bullish on the stock, designating 5.82 percent of its 13F equity portfolio to CACI.
Now, key money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, established the largest position in CACI International Inc (NYSE:CACI). Alyeska Investment Group had $29.6 million invested in the company at the end of the quarter. Ravee Mehta’s Nishkama Capital also made a $0.8 million investment in the stock during the quarter. The other funds with brand new CACI positions are Michael Gelband’s ExodusPoint Capital, David Harding’s Winton Capital Management, and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s check out hedge fund activity in other stocks similar to CACI International Inc (NYSE:CACI). We will take a look at Pan American Silver Corp. (NASDAQ:PAAS), Rexnord Corp (NYSE:RXN), National Oilwell Varco, Inc. (NYSE:NOV), Stag Industrial Inc (NYSE:STAG), NCR Corporation (NYSE:NCR), AbCellera Biologics Inc. (NASDAQ:ABCL), and DigitalOcean Holdings, Inc. (NYSE:DOCN). All of these stocks’ market caps are closest to CACI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PAAS | 24 | 312456 | -3 |
| RXN | 29 | 521863 | 4 |
| NOV | 30 | 993193 | 1 |
| STAG | 15 | 232197 | -2 |
| NCR | 38 | 526452 | 14 |
| ABCL | 18 | 773158 | -2 |
| DOCN | 16 | 219780 | -6 |
| Average | 24.3 | 511300 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.3 hedge funds with bullish positions and the average amount invested in these stocks was $511 million. That figure was $491 million in CACI’s case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 15 bullish hedge fund positions. CACI International Inc (NYSE:CACI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CACI is 56.9. 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. 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Hedge funds were also right about betting on CACI as the stock returned 10.5% since the end of Q2 (through 10/15) 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.
