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. We have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) a bargain? Investors who are in the know were turning bullish. The number of long hedge fund bets improved by 21 recently. Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that FFIE isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Sander Gerber of Hudson Bay Capital
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 review the recent hedge fund action surrounding Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE).
Do Hedge Funds Think FFIE Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 21 from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FFIE over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Peter S. Park’s Park West Asset Management has the largest position in Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE), worth close to $28.1 million, amounting to 0.7% of its total 13F portfolio. On Park West Asset Management’s heels is Ken Griffin of Citadel Investment Group, with a $24 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish contain Jeffrey Altman’s Owl Creek Asset Management, Jos Shaver’s Electron Capital Partners and Sander Gerber’s Hudson Bay Capital Management. In terms of the portfolio weights assigned to each position Ionic Capital Management allocated the biggest weight to Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE), around 0.87% of its 13F portfolio. Athanor Capital is also relatively very bullish on the stock, designating 0.79 percent of its 13F equity portfolio to FFIE.
As industrywide interest jumped, some big names were breaking ground themselves. Park West Asset Management, managed by Peter S. Park, assembled the biggest position in Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE). Park West Asset Management had $28.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $24 million investment in the stock during the quarter. The other funds with brand new FFIE positions are Jeffrey Altman’s Owl Creek Asset Management, Jos Shaver’s Electron Capital Partners, and Sander Gerber’s Hudson Bay Capital Management.
Let’s now review hedge fund activity in other stocks similar to Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE). These stocks are VectivBio Holding AG (NASDAQ:VECT), Syros Pharmaceuticals, Inc. (NASDAQ:SYRS), First Bank (NASDAQ:FRBA), EMCORE Corporation (NASDAQ:EMKR), Northeast Bank (NASDAQ:NBN), Golden Star Resources Ltd. (NYSE:GSS), and CTI Biopharma Corp. (NASDAQ:CTIC). All of these stocks’ market caps match FFIE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VECT | 9 | 86831 | 9 |
| SYRS | 13 | 37350 | -4 |
| FRBA | 7 | 8286 | 1 |
| EMKR | 17 | 73581 | -2 |
| NBN | 8 | 44404 | -1 |
| GSS | 6 | 11452 | 0 |
| CTIC | 11 | 86913 | 1 |
| Average | 10.1 | 49831 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.1 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $145 million in FFIE’s case. EMCORE Corporation (NASDAQ:EMKR) is the most popular stock in this table. On the other hand Golden Star Resources Ltd. (NYSE:GSS) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) is more popular among hedge funds. Our overall hedge fund sentiment score for FFIE is 90. 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. Unfortunately FFIE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FFIE were disappointed as the stock returned -43.6% since the end of the third quarter (through 12/31) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.