The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Solaredge Technologies Inc (NASDAQ:SEDG).
Is Solaredge Technologies Inc (NASDAQ:SEDG) a buy here? The best stock pickers were getting less optimistic. The number of bullish hedge fund positions decreased by 4 in recent months. Solaredge Technologies Inc (NASDAQ:SEDG) was in 33 hedge funds’ portfolios at the end of September. The all time high for this statistic is 37. Our calculations also showed that SEDG isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Israel Englander of Millennium Management
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 we’re going to take a gander at the fresh hedge fund action encompassing Solaredge Technologies Inc (NASDAQ:SEDG).
Do Hedge Funds Think SEDG Is A Good Stock To Buy Now?
At the end of September, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards SEDG over the last 25 quarters. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
More specifically, Impax Asset Management was the largest shareholder of Solaredge Technologies Inc (NASDAQ:SEDG), with a stake worth $198.2 million reported as of the end of September. Trailing Impax Asset Management was Rima Senvest Management, which amassed a stake valued at $91.2 million. Millennium Management, Citadel Investment Group, and D E Shaw 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 Noked Capital allocated the biggest weight to Solaredge Technologies Inc (NASDAQ:SEDG), around 7.67% of its 13F portfolio. Montanaro Asset Management is also relatively very bullish on the stock, setting aside 4.73 percent of its 13F equity portfolio to SEDG.
Since Solaredge Technologies Inc (NASDAQ:SEDG) has experienced falling interest from hedge fund managers, we can see that there lies a certain “tier” of money managers that decided to sell off their positions entirely in the third quarter. It’s worth mentioning that Jack Woodruff’s Candlestick Capital Management dumped the biggest investment of the 750 funds watched by Insider Monkey, comprising an estimated $25.6 million in stock. Steve Cohen’s fund, Point72 Asset Management, also sold off its stock, about $14.6 million worth. These moves are interesting, as aggregate hedge fund interest fell by 4 funds in the third quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Solaredge Technologies Inc (NASDAQ:SEDG) but similarly valued. These stocks are Nordson Corporation (NASDAQ:NDSN), W.P. Carey Inc. (NYSE:WPC), Lightspeed POS Inc. (NYSE:LSPD), Masco Corporation (NYSE:MAS), News Corp (NASDAQ:NWS), Lumen Technologies, Inc. (NYSE:LUMN), and Eastman Chemical Company (NYSE:EMN). This group of stocks’ market values match SEDG’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NDSN | 29 | 310857 | -5 |
| WPC | 24 | 142763 | -5 |
| LSPD | 26 | 631903 | -3 |
| MAS | 29 | 528895 | -6 |
| NWS | 13 | 130888 | -6 |
| LUMN | 25 | 941373 | -8 |
| EMN | 30 | 254650 | 3 |
| Average | 25.1 | 420190 | -4.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.1 hedge funds with bullish positions and the average amount invested in these stocks was $420 million. That figure was $594 million in SEDG’s case. Eastman Chemical Company (NYSE:EMN) is the most popular stock in this table. On the other hand News Corp (NASDAQ:NWS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Solaredge Technologies Inc (NASDAQ:SEDG) is more popular among hedge funds. Our overall hedge fund sentiment score for SEDG is 77.8. 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. 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 returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on SEDG as the stock returned 23.6% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Solaredge Technologies Inc. (NASDAQ:SEDG)
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Disclosure: None. This article was originally published at Insider Monkey.
