The Insider Monkey team has completed processing the quarterly 13F filings for the June 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 Bloom Energy Corporation (NYSE:BE).
Bloom Energy Corporation (NYSE:BE) was in 20 hedge funds’ portfolios at the end of June. The all time high for this statistic is 22. BE has experienced a decrease in hedge fund sentiment of late. There were 22 hedge funds in our database with BE positions at the end of the first quarter. Our calculations also showed that BE isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Matthew Hulsizer of PEAK6 Capital
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Do Hedge Funds Think BE Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the first quarter of 2020. By comparison, 16 hedge funds held shares or bullish call options in BE a year ago. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
The largest stake in Bloom Energy Corporation (NYSE:BE) was held by D E Shaw, which reported holding $21.3 million worth of stock at the end of June. It was followed by Citadel Investment Group with a $15.3 million position. Other investors bullish on the company included Citadel Investment Group, PEAK6 Capital Management, and Renaissance Technologies. In terms of the portfolio weights assigned to each position Sandbar Asset Management allocated the biggest weight to Bloom Energy Corporation (NYSE:BE), around 0.74% of its 13F portfolio. Brevan Howard is also relatively very bullish on the stock, setting aside 0.52 percent of its 13F equity portfolio to BE.
Because Bloom Energy Corporation (NYSE:BE) has witnessed falling interest from hedge fund managers, it’s safe to say that there is a sect of fund managers that elected to cut their entire stakes in the second quarter. Interestingly, Donald Sussman’s Paloma Partners cut the biggest position of the “upper crust” of funds monitored by Insider Monkey, totaling an estimated $2.9 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund said goodbye to about $2.1 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds in the second quarter.
Let’s now review hedge fund activity in other stocks similar to Bloom Energy Corporation (NYSE:BE). We will take a look at Hawaiian Electric Industries, Inc. (NYSE:HE), MGIC Investment Corporation (NYSE:MTG), Trupanion Inc (NASDAQ:TRUP), Vicor Corp (NASDAQ:VICR), Sendas Distribuidora S.A. (NYSE:ASAI), UFP Industries, Inc. (NASDAQ:UFPI), and AMN Healthcare Services Inc (NYSE:AMN). All of these stocks’ market caps match BE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HE | 14 | 76206 | 2 |
| MTG | 27 | 265101 | -1 |
| TRUP | 14 | 294926 | -3 |
| VICR | 13 | 123682 | -7 |
| ASAI | 7 | 14608 | 1 |
| UFPI | 13 | 129142 | -3 |
| AMN | 24 | 145013 | 5 |
| Average | 16 | 149811 | -0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $150 million. That figure was $77 million in BE’s case. MGIC Investment Corporation (NYSE:MTG) is the most popular stock in this table. On the other hand Sendas Distribuidora S.A. (NYSE:ASAI) is the least popular one with only 7 bullish hedge fund positions. Bloom Energy Corporation (NYSE:BE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BE is 62.8. 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 positive signal but 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 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately BE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BE were disappointed as the stock returned -24.9% since the end of June (through 10/22) 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 many of these stocks already outperformed the market since 2019.
Follow Bloom Energy Corp (NYSE:BE)
Follow Bloom Energy Corp (NYSE:BE)
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Disclosure: None. This article was originally published at Insider Monkey.
