Hedge Funds Are Crazy About MongoDB, Inc. (MDB)

Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of MongoDB, Inc. (NASDAQ:MDB).

MongoDB, Inc. (NASDAQ:MDB) has seen an increase in hedge fund sentiment lately. MongoDB, Inc. (NASDAQ:MDB) was in 47 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 46. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 44 hedge funds in our database with MDB holdings at the end of June. Our calculations also showed that MDB 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 encompassing MongoDB, Inc. (NASDAQ:MDB).

Louis Bacon Moore of Moore Capital

Do Hedge Funds Think MDB Is A Good Stock To Buy Now?

At the end of September, a total of 47 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from the previous quarter. By comparison, 42 hedge funds held shares or bullish call options in MDB a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in MongoDB, Inc. (NASDAQ:MDB) was held by Whale Rock Capital Management, which reported holding $596.5 million worth of stock at the end of September. It was followed by Tybourne Capital Management with a $275.6 million position. Other investors bullish on the company included Arrowstreet Capital, Citadel Investment Group, and SQN Investors. In terms of the portfolio weights assigned to each position SQN Investors allocated the biggest weight to MongoDB, Inc. (NASDAQ:MDB), around 10.72% of its 13F portfolio. Andar Capital is also relatively very bullish on the stock, dishing out 8.65 percent of its 13F equity portfolio to MDB.

Now, key hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, created the most valuable position in MongoDB, Inc. (NASDAQ:MDB). Millennium Management had $28.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $23.6 million investment in the stock during the quarter. The following funds were also among the new MDB investors: Louis Bacon’s Moore Global Investments, Wen Han Li’s Andar Capital, and Rob Citrone’s Discovery Capital Management.

Let’s also examine hedge fund activity in other stocks similar to MongoDB, Inc. (NASDAQ:MDB). We will take a look at Corning Incorporated (NYSE:GLW), Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), Ferguson plc (NYSE:FERG), State Street Corporation (NYSE:STT), AvalonBay Communities Inc (NYSE:AVB), Corteva, Inc. (NYSE:CTVA), and Seagen Inc. (NASDAQ:SGEN). This group of stocks’ market valuations match MDB’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 30.6 hedge funds with bullish positions and the average amount invested in these stocks was $2868 million. That figure was $2172 million in MDB’s case. State Street Corporation (NYSE:STT) is the most popular stock in this table. On the other hand Ferguson plc (NYSE:FERG) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks MongoDB, Inc. (NASDAQ:MDB) is more popular among hedge funds. Our overall hedge fund sentiment score for MDB 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately MDB wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MDB were disappointed as the stock returned 5.6% since the end of the third quarter (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 since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.