Hedge Funds Are Betting On T-Mobile US, Inc. (TMUS)

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 at Insider Monkey have plowed through 873 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article we look at what those investors think of T-Mobile US, Inc. (NASDAQ:TMUS).

Is T-Mobile US, Inc. (NASDAQ:TMUS) ready to rally soon? The best stock pickers were taking an optimistic view. The number of long hedge fund positions went up by 2 recently. T-Mobile US, Inc. (NASDAQ:TMUS) was in 100 hedge funds’ portfolios at the end of June. The all time high for this statistic is 113. Our calculations also showed that TMUS ranked 19th among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 98 hedge funds in our database with TMUS holdings at the end of March.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Ole Andreas Halvorsen of Viking Global

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. With all of this in mind we’re going to take a look at the latest hedge fund action regarding T-Mobile US, Inc. (NASDAQ:TMUS).

Do Hedge Funds Think TMUS Is A Good Stock To Buy Now?

Heading into the third quarter of 2021, a total of 100 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 2% from the previous quarter. By comparison, 113 hedge funds held shares or bullish call options in TMUS a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in T-Mobile US, Inc. (NASDAQ:TMUS) was held by Viking Global, which reported holding $1092.3 million worth of stock at the end of June. It was followed by Egerton Capital Limited with a $962.9 million position. Other investors bullish on the company included Berkshire Hathaway, Farallon Capital, and D1 Capital Partners. In terms of the portfolio weights assigned to each position BlueDrive Global Investors allocated the biggest weight to T-Mobile US, Inc. (NASDAQ:TMUS), around 19.92% of its 13F portfolio. RIT Capital Partners is also relatively very bullish on the stock, dishing out 13.85 percent of its 13F equity portfolio to TMUS.

As one would reasonably expect, specific money managers have jumped into T-Mobile US, Inc. (NASDAQ:TMUS) headfirst. Tremblant Capital, managed by Brett Barakett, created the most outsized position in T-Mobile US, Inc. (NASDAQ:TMUS). Tremblant Capital had $128.6 million invested in the company at the end of the quarter. Josh Resnick’s Jericho Capital Asset Management also made a $84 million investment in the stock during the quarter. The following funds were also among the new TMUS investors: Anthony Bozza’s Lakewood Capital Management, Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management, and James Crichton’s Hitchwood Capital Management.

Let’s check out hedge fund activity in other stocks similar to T-Mobile US, Inc. (NASDAQ:TMUS). We will take a look at Texas Instruments Incorporated (NASDAQ:TXN), Costco Wholesale Corporation (NASDAQ:COST), McDonald’s Corporation (NYSE:MCD), Morgan Stanley (NYSE:MS), Medtronic plc (NYSE:MDT), SAP SE (NYSE:SAP), and QUALCOMM, Incorporated (NASDAQ:QCOM). This group of stocks’ market caps are closest to TMUS’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 56.6 hedge funds with bullish positions and the average amount invested in these stocks was $3413 million. That figure was $8021 million in TMUS’s case. QUALCOMM, Incorporated (NASDAQ:QCOM) is the most popular stock in this table. On the other hand SAP SE (NYSE:SAP) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks T-Mobile US, Inc. (NASDAQ:TMUS) is more popular among hedge funds. Our overall hedge fund sentiment score for TMUS is 87.5. 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 24.1% in 2021 through September 20th and still beat the market by 6.9 percentage points. Unfortunately TMUS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TMUS were disappointed as the stock returned -13.3% since the end of the second quarter (through 9/20) 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.