The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Semtech Corporation (NASDAQ:SMTC).
Semtech Corporation (NASDAQ:SMTC) shareholders have witnessed an increase in hedge fund interest in recent months. Semtech Corporation (NASDAQ:SMTC) was in 29 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 28. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 28 hedge funds in our database with SMTC holdings at the end of June. Our calculations also showed that SMTC 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. With all of this in mind let’s check out the latest hedge fund action surrounding Semtech Corporation (NASDAQ:SMTC).
Roger Ibbotson of Zebra Capital Management
Do Hedge Funds Think SMTC Is A Good Stock To Buy Now?
At Q3’s end, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SMTC over the last 25 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
The largest stake in Semtech Corporation (NASDAQ:SMTC) was held by Fisher Asset Management, which reported holding $100.7 million worth of stock at the end of September. It was followed by Millennium Management with a $52 million position. Other investors bullish on the company included Schonfeld Strategic Advisors, D E Shaw, and Adage Capital Management. In terms of the portfolio weights assigned to each position Nishkama Capital allocated the biggest weight to Semtech Corporation (NASDAQ:SMTC), around 2.52% of its 13F portfolio. Force Hill Capital Management is also relatively very bullish on the stock, earmarking 1.48 percent of its 13F equity portfolio to SMTC.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Nishkama Capital, managed by Ravee Mehta, created the largest position in Semtech Corporation (NASDAQ:SMTC). Nishkama Capital had $8.6 million invested in the company at the end of the quarter. Andrew Sandler’s Sandler Capital Management also initiated a $4.2 million position during the quarter. The other funds with brand new SMTC positions are John Overdeck and David Siegel’s Two Sigma Advisors, Peter Algert’s Algert Global, and Roger Ibbotson’s Zebra Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Semtech Corporation (NASDAQ:SMTC) but similarly valued. We will take a look at Alliance Data Systems Corporation (NYSE:ADS), Progyny, Inc. (NASDAQ:PGNY), Flowers Foods, Inc. (NYSE:FLO), The Timken Company (NYSE:TKR), Valmont Industries, Inc. (NYSE:VMI), Hexcel Corporation (NYSE:HXL), and The Goodyear Tire & Rubber Company (NASDAQ:GT). This group of stocks’ market caps are similar to SMTC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ADS | 31 | 1119762 | -3 |
| PGNY | 28 | 200401 | -11 |
| FLO | 19 | 240286 | -2 |
| TKR | 20 | 153505 | -2 |
| VMI | 19 | 424283 | -6 |
| HXL | 21 | 122321 | -1 |
| GT | 37 | 449453 | 4 |
| Average | 25 | 387144 | -3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $387 million. That figure was $290 million in SMTC’s case. The Goodyear Tire & Rubber Company (NASDAQ:GT) is the most popular stock in this table. On the other hand Flowers Foods, Inc. (NYSE:FLO) is the least popular one with only 19 bullish hedge fund positions. Semtech Corporation (NASDAQ:SMTC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SMTC is 63.8. 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 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 SMTC as the stock returned 9.9% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Semtech Corp (NASDAQ:SMTC)
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Disclosure: None. This article was originally published at Insider Monkey.
