We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Asana Inc. (NYSE:ASAN) based on that data.
Is Asana Inc. (NYSE:ASAN) the right pick for your portfolio? Investors who are in the know were becoming more confident. The number of bullish hedge fund bets rose by 11 recently. Asana Inc. (NYSE:ASAN) was in 33 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 22. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ASAN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Matthew Hulsizer of PEAK6 Capital
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 take a glance at the recent hedge fund action surrounding Asana Inc. (NYSE:ASAN).
Do Hedge Funds Think ASAN Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ASAN over the last 25 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
The largest stake in Asana Inc. (NYSE:ASAN) was held by Tiger Global Management LLC, which reported holding $299.2 million worth of stock at the end of September. It was followed by 12 West Capital Management with a $145.4 million position. Other investors bullish on the company included Generation Investment Management, Renaissance Technologies, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Whetstone Capital Advisors allocated the biggest weight to Asana Inc. (NYSE:ASAN), around 6.98% of its 13F portfolio. 12 West Capital Management is also relatively very bullish on the stock, dishing out 6.63 percent of its 13F equity portfolio to ASAN.
As aggregate interest increased, key hedge funds have jumped into Asana Inc. (NYSE:ASAN) headfirst. D E Shaw, managed by D. E. Shaw, created the most outsized position in Asana Inc. (NYSE:ASAN). D E Shaw had $38.1 million invested in the company at the end of the quarter. Brad Farber’s Atika Capital also initiated a $12.8 million position during the quarter. The following funds were also among the new ASAN investors: Matthew Hulsizer’s PEAK6 Capital Management, Donald Sussman’s Paloma Partners, and Mikal Patel’s Oribel Capital Management.
Let’s go over hedge fund activity in other stocks similar to Asana Inc. (NYSE:ASAN). These stocks are PG&E Corporation (NYSE:PCG), Bio-Techne Corporation (NASDAQ:TECH), Raymond James Financial, Inc. (NYSE:RJF), Burlington Stores Inc (NYSE:BURL), Restaurant Brands International Inc (NYSE:QSR), Avangrid, Inc. (NYSE:AGR), and Tradeweb Markets Inc. (NASDAQ:TW). All of these stocks’ market caps match ASAN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PCG | 54 | 3825487 | -10 |
| TECH | 33 | 432450 | 8 |
| RJF | 32 | 767984 | 3 |
| BURL | 45 | 1835947 | 2 |
| QSR | 22 | 1873877 | 0 |
| AGR | 9 | 37232 | -3 |
| TW | 22 | 135429 | 7 |
| Average | 31 | 1272629 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $1273 million. That figure was $1053 million in ASAN’s case. PG&E Corporation (NYSE:PCG) is the most popular stock in this table. On the other hand Avangrid, Inc. (NYSE:AGR) is the least popular one with only 9 bullish hedge fund positions. Asana Inc. (NYSE:ASAN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ASAN is 66.7. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 beat the market again by 5.6 percentage points. Unfortunately ASAN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ASAN were disappointed as the stock returned 0.1% since the end of September (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 many of these stocks already outperformed the market since 2019.
Follow Asana Inc. (NYSE:ASAN)
Follow Asana Inc. (NYSE:ASAN)
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Disclosure: None. This article was originally published at Insider Monkey.
