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 866 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 March 31st. In this article we look at what those investors think of Maxar Technologies Inc (NYSE:MAXR).
Maxar Technologies Inc (NYSE:MAXR) investors should pay attention to an increase in support from the world’s most elite money managers recently. Maxar Technologies Inc (NYSE:MAXR) was in 22 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 20. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that MAXR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery 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. Keeping this in mind we’re going to take a peek at the fresh hedge fund action encompassing Maxar Technologies Inc (NYSE:MAXR).
Do Hedge Funds Think MAXR Is A Good Stock To Buy Now?
At first quarter’s end, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 16% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards MAXR over the last 23 quarters. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
More specifically, Corriente Advisors was the largest shareholder of Maxar Technologies Inc (NYSE:MAXR), with a stake worth $100.2 million reported as of the end of March. Trailing Corriente Advisors was Simcoe Capital Management, which amassed a stake valued at $77.2 million. D E Shaw, Marshall Wace LLP, and Citadel Investment Group 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 Corriente Advisors allocated the biggest weight to Maxar Technologies Inc (NYSE:MAXR), around 36.9% of its 13F portfolio. Simcoe Capital Management is also relatively very bullish on the stock, designating 9.83 percent of its 13F equity portfolio to MAXR.
Now, some big names were breaking ground themselves. Laurion Capital Management, managed by Benjamin A. Smith, established the most valuable position in Maxar Technologies Inc (NYSE:MAXR). Laurion Capital Management had $8.9 million invested in the company at the end of the quarter. Frank Fu’s CaaS Capital also made a $8.8 million investment in the stock during the quarter. The following funds were also among the new MAXR investors: Steve Cohen’s Point72 Asset Management, Matthew L Pinz’s Pinz Capital, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Maxar Technologies Inc (NYSE:MAXR) but similarly valued. These stocks are Coca-Cola Consolidated Inc. (NASDAQ:COKE), Comfort Systems USA, Inc. (NYSE:FIX), Laureate Education, Inc. (NASDAQ:LAUR), Albany International Corp. (NYSE:AIN), FirstCash, Inc. (NASDAQ:FCFS), Sunstone Hotel Investors Inc (NYSE:SHO), and Nu Skin Enterprises, Inc. (NYSE:NUS). This group of stocks’ market valuations are closest to MAXR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COKE | 14 | 28996 | 2 |
| FIX | 19 | 87412 | -1 |
| LAUR | 21 | 184412 | -7 |
| AIN | 12 | 22018 | -1 |
| FCFS | 13 | 100364 | -4 |
| SHO | 17 | 121727 | 1 |
| NUS | 19 | 327670 | -3 |
| Average | 16.4 | 124657 | -1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.4 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $368 million in MAXR’s case. Laureate Education, Inc. (NASDAQ:LAUR) is the most popular stock in this table. On the other hand Albany International Corp. (NYSE:AIN) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Maxar Technologies Inc (NYSE:MAXR) is more popular among hedge funds. Our overall hedge fund sentiment score for MAXR is 88. 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 23.8% in 2021 through July 16th and still beat the market by 7.7 percentage points. Unfortunately MAXR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MAXR were disappointed as the stock returned -10.7% since the end of the first quarter (through 7/16) 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.
Follow Maxar Technologies Inc. (NYSE:MAXR)
Follow Maxar Technologies Inc. (NYSE:MAXR)
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Disclosure: None. This article was originally published at Insider Monkey.
