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 nVent Electric plc (NYSE:NVT).
nVent Electric plc (NYSE:NVT) has experienced an increase in support from the world’s most elite money managers lately. nVent Electric plc (NYSE:NVT) was in 34 hedge funds’ portfolios at the end of September. The all time high for this statistic is 34. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that NVT isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Dmitry Balyasny of Balyasny Asset 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. Now we’re going to go over the fresh hedge fund action surrounding nVent Electric plc (NYSE:NVT).
Do Hedge Funds Think NVT Is A Good Stock To Buy Now?
At the end of September, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards NVT over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Ariel Investments was the largest shareholder of nVent Electric plc (NYSE:NVT), with a stake worth $133.1 million reported as of the end of September. Trailing Ariel Investments was Arrowstreet Capital, which amassed a stake valued at $72.5 million. Lansdowne Partners, Interval Partners, 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 Lansdowne Partners allocated the biggest weight to nVent Electric plc (NYSE:NVT), around 3.28% of its 13F portfolio. Greenhouse Funds is also relatively very bullish on the stock, earmarking 3.02 percent of its 13F equity portfolio to NVT.
As aggregate interest increased, key hedge funds have jumped into nVent Electric plc (NYSE:NVT) headfirst. North Fourth Asset Management, managed by Anthony Joseph Vaccarino, assembled the most outsized position in nVent Electric plc (NYSE:NVT). North Fourth Asset Management had $4.5 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $4.5 million investment in the stock during the quarter. The following funds were also among the new NVT investors: Paul Tudor Jones’s Tudor Investment Corp, Alexander Mitchell’s Scopus Asset Management, and Peter Algert’s Algert Global.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as nVent Electric plc (NYSE:NVT) but similarly valued. These stocks are LifeStance Health Group Inc. (NASDAQ:LFST), Altair Engineering Inc. (NASDAQ:ALTR), AMN Healthcare Services Inc (NYSE:AMN), Helen of Troy Limited (NASDAQ:HELE), Valley National Bancorp (NYSE:VLY), PacWest Bancorp (NASDAQ:PACW), and Ashland Global Holdings Inc.. (NYSE:ASH). This group of stocks’ market values resemble NVT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LFST | 9 | 60535 | 9 |
| ALTR | 16 | 793559 | -2 |
| AMN | 26 | 258463 | 2 |
| HELE | 15 | 188572 | -2 |
| VLY | 20 | 104883 | 7 |
| PACW | 33 | 701036 | 4 |
| ASH | 26 | 800709 | -2 |
| Average | 20.7 | 415394 | 2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.7 hedge funds with bullish positions and the average amount invested in these stocks was $415 million. That figure was $553 million in NVT’s case. PacWest Bancorp (NASDAQ:PACW) is the most popular stock in this table. On the other hand LifeStance Health Group Inc. (NASDAQ:LFST) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks nVent Electric plc (NYSE:NVT) is more popular among hedge funds. Our overall hedge fund sentiment score for NVT is 89. 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 NVT as the stock returned 8.3% 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 Nvent Electric Plc (NYSE:NVT)
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Disclosure: None. This article was originally published at Insider Monkey.
