With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter of 2021. One of these stocks was Edison International (NYSE:EIX).
Edison International (NYSE:EIX) investors should pay attention to an increase in activity from the world’s largest hedge funds recently. Edison International (NYSE:EIX) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic is 37. Our calculations also showed that EIX 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 take a gander at the latest hedge fund action encompassing Edison International (NYSE:EIX).
Steven Cohen of Point72 Asset Management
Do Hedge Funds Think EIX Is A Good Stock To Buy Now?
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 39% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards EIX over the last 25 quarters. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
The largest stake in Edison International (NYSE:EIX) was held by Pzena Investment Management, which reported holding $814.7 million worth of stock at the end of September. It was followed by Zimmer Partners with a $240.4 million position. Other investors bullish on the company included Electron Capital Partners, Point72 Asset Management, and Empyrean Capital Partners. In terms of the portfolio weights assigned to each position Zimmer Partners allocated the biggest weight to Edison International (NYSE:EIX), around 3.78% of its 13F portfolio. Pzena Investment Management is also relatively very bullish on the stock, setting aside 3.22 percent of its 13F equity portfolio to EIX.
As one would reasonably expect, specific money managers were leading the bulls’ herd. Point72 Asset Management, managed by Steve Cohen, established the biggest position in Edison International (NYSE:EIX). Point72 Asset Management had $21.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $11.9 million investment in the stock during the quarter. The other funds with brand new EIX positions are Brandon Haley’s Holocene Advisors, D. E. Shaw’s D E Shaw, and Qing Li’s Sciencast Management.
Let’s check out hedge fund activity in other stocks similar to Edison International (NYSE:EIX). We will take a look at Fortis Inc. (NYSE:FTS), ICON Public Limited Company (NASDAQ:ICLR), POSCO (NYSE:PKX), CarMax Inc (NYSE:KMX), Cerner Corporation (NASDAQ:CERN), Ameren Corporation (NYSE:AEE), and CGI Inc. (NYSE:GIB). This group of stocks’ market caps resemble EIX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FTS | 5 | 171234 | -4 |
| ICLR | 35 | 1349183 | -4 |
| PKX | 11 | 140930 | -1 |
| KMX | 36 | 1544189 | -3 |
| CERN | 36 | 1279936 | -2 |
| AEE | 14 | 298780 | -9 |
| GIB | 18 | 336354 | 4 |
| Average | 22.1 | 731515 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.1 hedge funds with bullish positions and the average amount invested in these stocks was $732 million. That figure was $1240 million in EIX’s case. CarMax Inc (NYSE:KMX) is the most popular stock in this table. On the other hand Fortis Inc. (NYSE:FTS) is the least popular one with only 5 bullish hedge fund positions. Edison International (NYSE:EIX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EIX is 62.5. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on EIX as the stock returned 19.9% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Edison International (NYSE:EIX)
Follow Edison International (NYSE:EIX)
Suggested Articles:
- 10 Best Finance Stocks To Buy Now
- 10 Best Money Saving Tips According to Experts
- Top 10 Cloud Computing Stocks To Buy
Disclosure: None. This article was originally published at Insider Monkey.
