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 Sea Limited (NYSE:SE).
Is Sea Limited (NYSE:SE) ready to rally soon? Hedge funds were betting on the stock. The number of long hedge fund positions moved up by 13 in recent months. Sea Limited (NYSE:SE) was in 117 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 115. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that SE ranked 12th among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 104 hedge funds in our database with SE holdings at the end of June.
Philippe Laffont of Coatue 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. With all of this in mind let’s take a gander at the fresh hedge fund action surrounding Sea Limited (NYSE:SE).
Do Hedge Funds Think SE Is A Good Stock To Buy Now?
At the end of September, a total of 117 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SE over the last 25 quarters. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Among these funds, Tiger Global Management LLC held the most valuable stake in Sea Limited (NYSE:SE), which was worth $3319.2 million at the end of the third quarter. On the second spot was Kora Management which amassed $1110.5 million worth of shares. SCGE Management, Coatue Management, 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 Kora Management allocated the biggest weight to Sea Limited (NYSE:SE), around 96.7% of its 13F portfolio. Panview Capital is also relatively very bullish on the stock, designating 33.63 percent of its 13F equity portfolio to SE.
As one would reasonably expect, some big names have jumped into Sea Limited (NYSE:SE) headfirst. D E Shaw, managed by D. E. Shaw, assembled the most valuable position in Sea Limited (NYSE:SE). D E Shaw had $205.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $191.7 million investment in the stock during the quarter. The following funds were also among the new SE investors: Brandon Haley’s Holocene Advisors, Lei Zhang’s Hillhouse Capital Management, and James Dinan’s York Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Sea Limited (NYSE:SE) but similarly valued. We will take a look at Shopify Inc (NYSE:SHOP), Medtronic plc (NYSE:MDT), T-Mobile US, Inc. (NYSE:TMUS), SAP SE (NYSE:SAP), United Parcel Service, Inc. (NYSE:UPS), Moderna, Inc. (NASDAQ:MRNA), and NextEra Energy, Inc. (NYSE:NEE). This group of stocks’ market caps are similar to SE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SHOP | 73 | 11451372 | -12 |
| MDT | 62 | 2278950 | -6 |
| TMUS | 89 | 6928776 | -11 |
| SAP | 15 | 1529829 | -2 |
| UPS | 42 | 1266269 | -10 |
| MRNA | 49 | 7315014 | 12 |
| NEE | 53 | 2374429 | -6 |
| Average | 54.7 | 4734948 | -5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 54.7 hedge funds with bullish positions and the average amount invested in these stocks was $4735 million. That figure was $14135 million in SE’s case. T-Mobile US, Inc. (NYSE:TMUS) is the most popular stock in this table. On the other hand SAP SE (NYSE:SAP) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Sea Limited (NYSE:SE) is more popular among hedge funds. Our overall hedge fund sentiment score for SE is 94.5. 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 SE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on SE were disappointed as the stock returned -9.6% 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.
Follow Sea Ltd (NYSE:SE)
Follow Sea Ltd (NYSE:SE)
Suggested Articles:
- 10 Best Software Stocks to Buy According to Billionaire Paul Tudor Jones
- 10 Best Small-cap Stocks to Buy Now
- Billionaire John Paulson’s Top 10 Stock Picks
Disclosure: None. This article was originally published at Insider Monkey.
