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 have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Nutrien Ltd. (NYSE:NTR) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Nutrien Ltd. (NYSE:NTR) was in 30 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 35. NTR has experienced an increase in support from the world’s most elite money managers recently. There were 28 hedge funds in our database with NTR holdings at the end of June. Our calculations also showed that NTR 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 go over the latest hedge fund action regarding Nutrien Ltd. (NYSE:NTR).
Phillip Gross of Adage Capital
Do Hedge Funds Think NTR Is A Good Stock To Buy Now?
At third quarter’s end, a total of 30 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from one quarter earlier. On the other hand, there were a total of 26 hedge funds with a bullish position in NTR a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Israel Englander’s Millennium Management has the most valuable position in Nutrien Ltd. (NYSE:NTR), worth close to $170.6 million, accounting for 0.1% of its total 13F portfolio. On Millennium Management’s heels is Citadel Investment Group, managed by Ken Griffin, which holds a $140.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish comprise Phill Gross and Robert Atchinson’s Adage Capital Management, Richard Driehaus’s Driehaus Capital and Joseph Sirdevan’s Galibier Capital Management. In terms of the portfolio weights assigned to each position Moerus Capital Management allocated the biggest weight to Nutrien Ltd. (NYSE:NTR), around 13.08% of its 13F portfolio. Galibier Capital Management is also relatively very bullish on the stock, earmarking 9.19 percent of its 13F equity portfolio to NTR.
As aggregate interest increased, key money managers have jumped into Nutrien Ltd. (NYSE:NTR) headfirst. Driehaus Capital, managed by Richard Driehaus, established the largest position in Nutrien Ltd. (NYSE:NTR). Driehaus Capital had $72.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $16.4 million position during the quarter. The following funds were also among the new NTR investors: Thomas E. Claugus’s GMT Capital, Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors, and Ken Grossman and Glen Schneider’s SG Capital Management.
Let’s check out hedge fund activity in other stocks similar to Nutrien Ltd. (NYSE:NTR). These stocks are Hilton Worldwide Holdings Inc (NYSE:HLT), Discover Financial Services (NYSE:DFS), Okta, Inc. (NASDAQ:OKTA), Zscaler, Inc. (NASDAQ:ZS), Centene Corporation (NYSE:CNC), CRH PLC (NYSE:CRH), and General Mills, Inc. (NYSE:GIS). All of these stocks’ market caps resemble NTR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HLT | 44 | 5364120 | -1 |
| DFS | 37 | 516149 | 0 |
| OKTA | 62 | 2262165 | 5 |
| ZS | 38 | 1624343 | 0 |
| CNC | 50 | 2431144 | 1 |
| CRH | 7 | 83127 | -2 |
| GIS | 32 | 731647 | -5 |
| Average | 38.6 | 1858956 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.6 hedge funds with bullish positions and the average amount invested in these stocks was $1859 million. That figure was $853 million in NTR’s case. Okta, Inc. (NASDAQ:OKTA) is the most popular stock in this table. On the other hand CRH PLC (NYSE:CRH) is the least popular one with only 7 bullish hedge fund positions. Nutrien Ltd. (NYSE:NTR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for NTR is 53.6. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 surpassed the market again by 5.6 percentage points. Unfortunately NTR wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); NTR investors were disappointed as the stock returned 2% since the end of September (through 11/30) 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 in 2021.
Follow Nutrien Ltd. (NASDAQ:NTR)
Follow Nutrien Ltd. (NASDAQ:NTR)
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Disclosure: None. This article was originally published at Insider Monkey.
