A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Portland General Electric Company (NYSE:POR).
Portland General Electric Company (NYSE:POR) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 21 hedge funds’ portfolios at the end of June. Our calculations also showed that POR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Envestnet Inc (NYSE:ENV), Black Hills Corporation (NYSE:BKH), and Atlantica Sustainable Infrastructure plc (NASDAQ:AY) to gather more data points.
In the 21st century investor’s toolkit there are a multitude of signals market participants use to size up stocks. A duo of the most underrated signals are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the best picks of the best investment managers can trounce the broader indices by a very impressive margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.
Donald Sussman of Paloma Partners
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 check out the latest hedge fund action encompassing Portland General Electric Company (NYSE:POR).
Do Hedge Funds Think POR Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. By comparison, 21 hedge funds held shares or bullish call options in POR a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
The largest stake in Portland General Electric Company (NYSE:POR) was held by Renaissance Technologies, which reported holding $14.9 million worth of stock at the end of June. It was followed by Two Sigma Advisors with a $12.5 million position. Other investors bullish on the company included Citadel Investment Group, ExodusPoint Capital, and Millennium Management. In terms of the portfolio weights assigned to each position Huber Capital Management allocated the biggest weight to Portland General Electric Company (NYSE:POR), around 0.63% of its 13F portfolio. Quantinno Capital is also relatively very bullish on the stock, setting aside 0.38 percent of its 13F equity portfolio to POR.
Seeing as Portland General Electric Company (NYSE:POR) has experienced a decline in interest from hedge fund managers, we can see that there exists a select few hedgies who sold off their positions entirely in the second quarter. Intriguingly, Matthew Davis’s Coann Capital said goodbye to the biggest stake of all the hedgies tracked by Insider Monkey, totaling about $7.4 million in stock, and Jinghua Yan’s TwinBeech Capital was right behind this move, as the fund sold off about $0.7 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks similar to Portland General Electric Company (NYSE:POR). These stocks are Envestnet Inc (NYSE:ENV), Black Hills Corporation (NYSE:BKH), Atlantica Sustainable Infrastructure plc (NASDAQ:AY), PennyMac Financial Services Inc (NYSE:PFSI), LivaNova PLC (NASDAQ:LIVN), Olink Holding AB (publ) (NASDAQ:OLK), and Weingarten Realty Investors (NYSE:WRI). This group of stocks’ market values are similar to POR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ENV | 17 | 329409 | -1 |
| BKH | 14 | 62523 | -4 |
| AY | 14 | 41097 | 1 |
| PFSI | 26 | 686257 | 1 |
| LIVN | 36 | 901546 | 8 |
| OLK | 16 | 116314 | -4 |
| WRI | 20 | 266193 | 6 |
| Average | 20.4 | 343334 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.4 hedge funds with bullish positions and the average amount invested in these stocks was $343 million. That figure was $70 million in POR’s case. LivaNova PLC (NASDAQ:LIVN) is the most popular stock in this table. On the other hand Black Hills Corporation (NYSE:BKH) is the least popular one with only 14 bullish hedge fund positions. Portland General Electric Company (NYSE:POR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for POR is 44.2. 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% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Hedge funds were also right about betting on POR as the stock returned 6.6% since the end of Q2 (through 10/22) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Portland General Electric Co (NYSE:POR)
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Disclosure: None. This article was originally published at Insider Monkey.
