In this article we will analyze whether IHS Markit Ltd. (NYSE:INFO) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is IHS Markit Ltd. (NYSE:INFO) worth your attention right now? Money managers were in a bullish mood. The number of bullish hedge fund bets rose by 3 in recent months. IHS Markit Ltd. (NYSE:INFO) was in 64 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 61. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that INFO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 61 hedge funds in our database with INFO positions at the end of the second quarter.
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 let’s take a look at the latest hedge fund action regarding IHS Markit Ltd. (NYSE:INFO).
Matthew Halbower of Pentwater Capital
Do Hedge Funds Think INFO Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 64 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from the previous quarter. The graph below displays the number of hedge funds with bullish position in INFO over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Pentwater Capital Management was the largest shareholder of IHS Markit Ltd. (NYSE:INFO), with a stake worth $1006.4 million reported as of the end of September. Trailing Pentwater Capital Management was Citadel Investment Group, which amassed a stake valued at $448.3 million. TCI Fund Management, Arrowstreet Capital, and Millennium Management 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 Sand Grove Capital Partners allocated the biggest weight to IHS Markit Ltd. (NYSE:INFO), around 26.74% of its 13F portfolio. BCK Capital is also relatively very bullish on the stock, designating 11.18 percent of its 13F equity portfolio to INFO.
Consequently, some big names were breaking ground themselves. TCI Fund Management, managed by Chris Hohn, established the most outsized position in IHS Markit Ltd. (NYSE:INFO). TCI Fund Management had $447.7 million invested in the company at the end of the quarter. Farallon Capital also made a $60 million investment in the stock during the quarter. The other funds with brand new INFO positions are Jimmy Levin’s Sculptor Capital, Isaac Corre’s Governors Lane, and Michael Hintze’s CQS Cayman LP.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as IHS Markit Ltd. (NYSE:INFO) but similarly valued. These stocks are Global Payments Inc (NYSE:GPN), IQVIA Holdings, Inc. (NYSE:IQV), Synopsys, Inc. (NASDAQ:SNPS), BCE Inc. (NYSE:BCE), eBay Inc (NASDAQ:EBAY), Palantir Technologies Inc. (NYSE:PLTR), and The Kraft Heinz Company (NASDAQ:KHC). This group of stocks’ market valuations are closest to INFO’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GPN | 68 | 3462603 | 2 |
| IQV | 66 | 3756655 | -3 |
| SNPS | 43 | 2343901 | 2 |
| BCE | 15 | 129110 | 1 |
| EBAY | 49 | 2097933 | 10 |
| PLTR | 35 | 1634776 | 9 |
| KHC | 33 | 12321504 | 0 |
| Average | 44.1 | 3678069 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 44.1 hedge funds with bullish positions and the average amount invested in these stocks was $3678 million. That figure was $6723 million in INFO’s case. Global Payments Inc (NYSE:GPN) is the most popular stock in this table. On the other hand BCE Inc. (NYSE:BCE) is the least popular one with only 15 bullish hedge fund positions. IHS Markit Ltd. (NYSE:INFO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for INFO is 84.2. 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 INFO as the stock returned 9.8% 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.
