Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Snowflake Inc (NYSE:SNOW) based on that data.
Snowflake Inc (NYSE:SNOW) was in 73 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 71. This means the bullish number of hedge fund positions in this stock currently sits at its new all time high. SNOW has experienced an increase in enthusiasm from smart money in recent months. There were 70 hedge funds in our database with SNOW holdings at the end of June. Our calculations also showed that SNOW 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. Now we’re going to go over the new hedge fund action surrounding Snowflake Inc (NYSE:SNOW).
Brad Gerstner of Altimeter Capital
Do Hedge Funds Think SNOW Is A Good Stock To Buy Now?
At third quarter’s end, a total of 73 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from one quarter earlier. On the other hand, there were a total of 59 hedge funds with a bullish position in SNOW a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Altimeter Capital Management, managed by Brad Gerstner, holds the number one position in Snowflake Inc (NYSE:SNOW). Altimeter Capital Management has a $6.3623 billion position in the stock, comprising 51% of its 13F portfolio. The second most bullish fund manager is Berkshire Hathaway, managed by Warren Buffett, which holds a $1.8525 billion position; 0.6% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism comprise Chase Coleman’s Tiger Global Management LLC, Philippe Laffont’s Coatue Management and Gabriel Plotkin’s Melvin Capital Management. In terms of the portfolio weights assigned to each position Altimeter Capital Management allocated the biggest weight to Snowflake Inc (NYSE:SNOW), around 50.97% of its 13F portfolio. JS Capital is also relatively very bullish on the stock, dishing out 12.7 percent of its 13F equity portfolio to SNOW.
Now, key hedge funds were breaking ground themselves. Tybourne Capital Management, managed by Eashwar Krishnan, assembled the biggest position in Snowflake Inc (NYSE:SNOW). Tybourne Capital Management had $290.2 million invested in the company at the end of the quarter. George Yang’s Anatole Investment Management also made a $87.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Zach Schreiber’s Point State Capital, Joseph Samuels’s Islet Management, and Robert Smith’s Vista Equity Partners.
Let’s check out hedge fund activity in other stocks similar to Snowflake Inc (NYSE:SNOW). We will take a look at Anthem Inc (NYSE:ANTM), ConocoPhillips (NYSE:COP), Analog Devices, Inc. (NASDAQ:ADI), U.S. Bancorp (NYSE:USB), Gilead Sciences, Inc. (NASDAQ:GILD), PetroChina Company Limited (NYSE:PTR), and Automatic Data Processing, Inc. (NASDAQ:ADP). All of these stocks’ market caps resemble SNOW’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ANTM | 59 | 4585560 | -8 |
| COP | 49 | 1371142 | -1 |
| ADI | 74 | 5698767 | 12 |
| USB | 42 | 8390873 | 1 |
| GILD | 55 | 1751615 | 1 |
| PTR | 7 | 94903 | -1 |
| ADP | 43 | 3616230 | 2 |
| Average | 47 | 3644156 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $3644 million. That figure was $14570 million in SNOW’s case. Analog Devices, Inc. (NASDAQ:ADI) is the most popular stock in this table. On the other hand PetroChina Company Limited (NYSE:PTR) is the least popular one with only 7 bullish hedge fund positions. Snowflake Inc (NYSE:SNOW) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SNOW is 87.3. 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. Hedge funds were also right about betting on SNOW as the stock returned 12.5% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
