Hedge Funds Are Piling Into DTE Energy Company (DTE)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 873 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their June 30th holdings, data that is available nowhere else. Should you consider DTE Energy Company (NYSE:DTE) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

DTE Energy Company (NYSE:DTE) was in 32 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 35. DTE shareholders have witnessed an increase in support from the world’s most elite money managers in recent months. There were 26 hedge funds in our database with DTE holdings at the end of March. Our calculations also showed that DTE isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

John Petry of Sessa Capital

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s check out the key hedge fund action encompassing DTE Energy Company (NYSE:DTE).

Do Hedge Funds Think DTE Is A Good Stock To Buy Now?

At the end of the second quarter, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 23% from the first quarter of 2020. Below, you can check out the change in hedge fund sentiment towards DTE over the last 24 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in DTE Energy Company (NYSE:DTE) was held by Sessa Capital, which reported holding $136.1 million worth of stock at the end of June. It was followed by AQR Capital Management with a $56.2 million position. Other investors bullish on the company included D E Shaw, ExodusPoint Capital, and Holocene Advisors. In terms of the portfolio weights assigned to each position Sessa Capital allocated the biggest weight to DTE Energy Company (NYSE:DTE), around 5.1% of its 13F portfolio. Socorro Asset Management is also relatively very bullish on the stock, designating 1.83 percent of its 13F equity portfolio to DTE.

As one would reasonably expect, key money managers were breaking ground themselves. Sessa Capital, managed by John Petry, created the largest position in DTE Energy Company (NYSE:DTE). Sessa Capital had $136.1 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also made a $41.1 million investment in the stock during the quarter. The following funds were also among the new DTE investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Phill Gross and Robert Atchinson’s Adage Capital Management, and Robert Charles Gibbins’s Autonomy Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as DTE Energy Company (NYSE:DTE) but similarly valued. We will take a look at ZTO Express (Cayman) Inc. (NYSE:ZTO), Enphase Energy Inc (NASDAQ:ENPH), Royalty Pharma Plc (NASDAQ:RPRX), Credit Suisse Group AG (NYSE:CS), ONEOK, Inc. (NYSE:OKE), Yandex NV (NASDAQ:YNDX), and CDW Corporation (NASDAQ:CDW). This group of stocks’ market caps match DTE’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 25.6 hedge funds with bullish positions and the average amount invested in these stocks was $957 million. That figure was $470 million in DTE’s case. Enphase Energy Inc (NASDAQ:ENPH) is the most popular stock in this table. On the other hand Credit Suisse Group AG (NYSE:CS) is the least popular one with only 10 bullish hedge fund positions. DTE Energy Company (NYSE:DTE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DTE is 69.8. 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Hedge funds were also right about betting on DTE as the stock returned 5% since the end of Q2 (through 10/15) 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.