Hedge Funds Are Falling in Love With SYNNEX Corporation (SNX) All Over Again

After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the successful hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards SYNNEX Corporation (NYSE:SNX).

SYNNEX Corporation (NYSE:SNX) was in 17 hedge funds’ portfolios at the end of September. SNX has seen an increase in activity from the world’s largest hedge funds lately. There were 13 hedge funds in our database with SNX holdings at the end of the previous quarter. At the end of this article we will also compare SNX to other stocks including Williams-Sonoma, Inc. (NYSE:WSM), Vermilion Energy Inc (NYSE:VET), and Lazard Ltd (NYSE:LAZ) to get a better sense of its popularity.

We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.

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What have hedge funds been doing with SYNNEX Corporation (NYSE:SNX)?

At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 31% increase from the previous quarter, as hedge fund ownership of SNX jumps to a yearly high. Below, you can check out the change in hedge fund sentiment towards SNX over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Of the funds tracked by Insider Monkey, AQR Capital Management, led by Cliff Asness, holds the number one position in SYNNEX Corporation (NYSE:SNX). AQR Capital Management has a $91.7 million position in the stock. The second most bullish fund manager is Renaissance Technologies, one of the largest hedge funds in the world, which holds an $11.8 million position. Other hedge funds and institutional investors that hold long positions consist of John Overdeck and David Siegel’s Two Sigma Advisors, George Hall’s Clinton Group, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.