At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not SYNNEX Corporation (NYSE:SNX) makes for a good investment right now.
Is SYNNEX Corporation (NYSE:SNX) going to take off soon? Money managers were taking an optimistic view. The number of long hedge fund positions moved up by 4 lately. SYNNEX Corporation (NYSE:SNX) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic is 27. Our calculations also showed that SNX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 20 hedge funds in our database with SNX positions at the end of the second quarter.
Jeffrey Tannenbaum of Fir Tree
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. Keeping this in mind let’s take a gander at the fresh hedge fund action surrounding SYNNEX Corporation (NYSE:SNX).
Do Hedge Funds Think SNX Is A Good Stock To Buy Now?
At the end of September, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SNX over the last 25 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Abrams Bison Investments was the largest shareholder of SYNNEX Corporation (NYSE:SNX), with a stake worth $253.6 million reported as of the end of September. Trailing Abrams Bison Investments was Lyrical Asset Management, which amassed a stake valued at $102.3 million. AQR Capital Management, Goodnow Investment Group, and Woodline Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Abrams Bison Investments allocated the biggest weight to SYNNEX Corporation (NYSE:SNX), around 18.88% of its 13F portfolio. Goodnow Investment Group is also relatively very bullish on the stock, setting aside 5.23 percent of its 13F equity portfolio to SNX.
Consequently, key hedge funds were breaking ground themselves. Woodline Partners, managed by Michael Rockefeller and KarláKroeker, established the biggest position in SYNNEX Corporation (NYSE:SNX). Woodline Partners had $33.5 million invested in the company at the end of the quarter. Jeffrey Tannenbaum’s Fir Tree also made a $17.8 million investment in the stock during the quarter. The following funds were also among the new SNX investors: Anand Parekh’s Alyeska Investment Group, Jinghua Yan’s TwinBeech Capital, and Greg Eisner’s Engineers Gate Manager.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as SYNNEX Corporation (NYSE:SNX) but similarly valued. We will take a look at Deckers Outdoor Corp (NASDAQ:DECK), Five Below Inc (NASDAQ:FIVE), Cleveland-Cliffs Inc (NYSE:CLF), Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), Guidewire Software Inc (NYSE:GWRE), Hill-Rom Holdings, Inc. (NYSE:HRC), and Intellia Therapeutics, Inc. (NASDAQ:NTLA). All of these stocks’ market caps are similar to SNX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DECK | 48 | 1213165 | 4 |
| FIVE | 40 | 996155 | -2 |
| CLF | 35 | 682055 | -9 |
| NCLH | 36 | 502017 | -7 |
| GWRE | 26 | 2005849 | -1 |
| HRC | 46 | 1410210 | 24 |
| NTLA | 37 | 1620289 | -4 |
| Average | 38.3 | 1204249 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.3 hedge funds with bullish positions and the average amount invested in these stocks was $1204 million. That figure was $596 million in SNX’s case. Deckers Outdoor Corp (NASDAQ:DECK) is the most popular stock in this table. On the other hand Guidewire Software Inc (NYSE:GWRE) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks SYNNEX Corporation (NYSE:SNX) is even less popular than GWRE. Our overall hedge fund sentiment score for SNX is 35.7. 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. Hedge funds dodged a bullet by taking a bearish stance towards SNX. Our calculations showed that the top 5 most popular hedge fund stocks 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 but managed to beat the market again by 5.1 percentage points. Unfortunately SNX wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); SNX investors were disappointed as the stock returned 3.5% since the end of the third quarter (through 12/9) 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.
Follow Td Synnex Corp (NYSE:SNX)
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Disclosure: None. This article was originally published at Insider Monkey.
