The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Northern Trust Corporation (NASDAQ:NTRS).
Northern Trust Corporation (NASDAQ:NTRS) has experienced an increase in hedge fund sentiment in recent months. Northern Trust Corporation (NASDAQ:NTRS) was in 34 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 37. There were 32 hedge funds in our database with NTRS positions at the end of the second quarter. Our calculations also showed that NTRS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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 glance at the fresh hedge fund action surrounding Northern Trust Corporation (NASDAQ:NTRS).
Do Hedge Funds Think NTRS Is A Good Stock To Buy Now?
At third quarter’s end, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from the previous quarter. By comparison, 28 hedge funds held shares or bullish call options in NTRS a year ago. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
The largest stake in Northern Trust Corporation (NASDAQ:NTRS) was held by Ariel Investments, which reported holding $206.6 million worth of stock at the end of September. It was followed by Balyasny Asset Management with a $61.3 million position. Other investors bullish on the company included Millennium Management, Citadel Investment Group, and GAMCO Investors. In terms of the portfolio weights assigned to each position Global Frontier Investments allocated the biggest weight to Northern Trust Corporation (NASDAQ:NTRS), around 2.36% of its 13F portfolio. Ariel Investments is also relatively very bullish on the stock, designating 1.89 percent of its 13F equity portfolio to NTRS.
As one would reasonably expect, key money managers have jumped into Northern Trust Corporation (NASDAQ:NTRS) headfirst. Citadel Investment Group, managed by Ken Griffin, established the biggest position in Northern Trust Corporation (NASDAQ:NTRS). Citadel Investment Group had $44.3 million invested in the company at the end of the quarter. Allon Hellmann’s Full18 Capital also initiated a $4.4 million position during the quarter. The other funds with brand new NTRS positions are Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management, Ran Pang’s Quantamental Technologies, and Greg Poole’s Echo Street Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Northern Trust Corporation (NASDAQ:NTRS) but similarly valued. These stocks are XP Inc. (NASDAQ:XP), Vulcan Materials Company (NYSE:VMC), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Dover Corporation (NYSE:DOV), Zillow Group Inc (NASDAQ:Z), Monolithic Power Systems, Inc. (NASDAQ:MPWR), and Xylem Inc (NYSE:XYL). This group of stocks’ market values are closest to NTRS’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| XP | 28 | 674196 | 3 |
| VMC | 43 | 1923351 | 0 |
| ALNY | 40 | 1030395 | 7 |
| DOV | 32 | 351286 | 3 |
| Z | 67 | 4251493 | -9 |
| MPWR | 28 | 799034 | -6 |
| XYL | 22 | 821321 | -1 |
| Average | 37.1 | 1407297 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 37.1 hedge funds with bullish positions and the average amount invested in these stocks was $1407 million. That figure was $535 million in NTRS’s case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand Xylem Inc (NYSE:XYL) is the least popular one with only 22 bullish hedge fund positions. Northern Trust Corporation (NASDAQ:NTRS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for NTRS is 47.9. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. A small number of hedge funds were also right about betting on NTRS as the stock returned 7.3% since the end of the third quarter (through 11/30) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
