Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is MaxLinear, Inc. (NYSE:MXL), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is MaxLinear, Inc. (NYSE:MXL) undervalued? The best stock pickers were getting more optimistic. The number of long hedge fund bets advanced by 3 in recent months. MaxLinear, Inc. (NYSE:MXL) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 29. Our calculations also showed that MXL isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 21 hedge funds in our database with MXL holdings at the end of June.
Richard Driehaus of Driehaus 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 take a look at the key hedge fund action encompassing MaxLinear, Inc. (NYSE:MXL).
Do Hedge Funds Think MXL Is A Good Stock To Buy Now?
At the end of September, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 14% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MXL 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.
Of the funds tracked by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management has the most valuable position in MaxLinear, Inc. (NYSE:MXL), worth close to $22.6 million, corresponding to less than 0.1%% of its total 13F portfolio. The second largest stake is held by G2 Investment Partners Management, managed by Josh Goldberg, which holds a $19.4 million position; 3.4% of its 13F portfolio is allocated to the company. Other peers with similar optimism consist of Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, Richard Driehaus’s Driehaus Capital and John Osterweis’s Osterweis Capital Management. In terms of the portfolio weights assigned to each position Boardman Bay Capital Management allocated the biggest weight to MaxLinear, Inc. (NYSE:MXL), around 5.41% of its 13F portfolio. G2 Investment Partners Management is also relatively very bullish on the stock, setting aside 3.37 percent of its 13F equity portfolio to MXL.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Driehaus Capital, managed by Richard Driehaus, assembled the most valuable position in MaxLinear, Inc. (NYSE:MXL). Driehaus Capital had $14.6 million invested in the company at the end of the quarter. John Osterweis’s Osterweis Capital Management also initiated a $11.3 million position during the quarter. The following funds were also among the new MXL investors: Renaissance Technologies, Ken Griffin’s Citadel Investment Group, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MaxLinear, Inc. (NYSE:MXL) but similarly valued. These stocks are MultiPlan Corporation (NYSE:MPLN), Brighthouse Financial, Inc. (NASDAQ:BHF), Atlas Corp. (NYSE:ATCO), Investors Bancorp, Inc. (NASDAQ:ISBC), Rent-A-Center Inc (NASDAQ:RCII), Allison Transmission Holdings Inc (NYSE:ALSN), and Freedom Holding Corp. (NASDAQ:FRHC). This group of stocks’ market values are closest to MXL’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MPLN | 27 | 298077 | 11 |
| BHF | 29 | 458644 | 3 |
| ATCO | 15 | 1453087 | -3 |
| ISBC | 20 | 73943 | 5 |
| RCII | 28 | 379238 | -1 |
| ALSN | 28 | 349661 | 5 |
| FRHC | 12 | 36936 | -1 |
| Average | 22.7 | 435655 | 2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.7 hedge funds with bullish positions and the average amount invested in these stocks was $436 million. That figure was $156 million in MXL’s case. Brighthouse Financial, Inc. (NASDAQ:BHF) is the most popular stock in this table. On the other hand Freedom Holding Corp. (NASDAQ:FRHC) is the least popular one with only 12 bullish hedge fund positions. MaxLinear, Inc. (NYSE:MXL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MXL is 68.1. 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 MXL as the stock returned 44.8% since the end of Q3 (through 12/9) 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.
