Hedge Funds Are Piling Into TechnipFMC plc (FTI)

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is TechnipFMC plc (NYSE:FTI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

TechnipFMC plc (NYSE:FTI) investors should pay attention to an increase in hedge fund sentiment of late. TechnipFMC plc (NYSE:FTI) was in 28 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 42. There were 25 hedge funds in our database with FTI positions at the end of the second quarter. Our calculations also showed that FTI 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. Now we’re going to view the fresh hedge fund action surrounding TechnipFMC plc (NYSE:FTI).

David Harding of Winton Capital Management

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

At Q3’s end, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 12% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards FTI over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Pzena Investment Management was the largest shareholder of TechnipFMC plc (NYSE:FTI), with a stake worth $157.7 million reported as of the end of September. Trailing Pzena Investment Management was Two Sigma Advisors, which amassed a stake valued at $57.7 million. Renaissance Technologies, Laurion Capital Management, and Masters Capital 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 SIR Capital Management allocated the biggest weight to TechnipFMC plc (NYSE:FTI), around 1.03% of its 13F portfolio. Masters Capital Management is also relatively very bullish on the stock, earmarking 0.93 percent of its 13F equity portfolio to FTI.

Now, specific money managers have been driving this bullishness. Point72 Asset Management, managed by Steve Cohen, assembled the largest position in TechnipFMC plc (NYSE:FTI). Point72 Asset Management had $7 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.3 million position during the quarter. The following funds were also among the new FTI investors: Peter Algert’s Algert Global, David Harding’s Winton Capital Management, and Noam Gottesman’s GLG Partners.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as TechnipFMC plc (NYSE:FTI) but similarly valued. These stocks are HB Fuller Co (NYSE:FUL), ONE Gas Inc (NYSE:OGS), Viper Energy Partners LP (NASDAQ:VNOM), Cogent Communications Holdings Inc. (NASDAQ:CCOI), Advanced Energy Industries, Inc. (NASDAQ:AEIS), Agora, Inc. (NASDAQ:API), and California Resources Corporation (NYSE:CRC). This group of stocks’ market caps resemble FTI’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $250 million. That figure was $334 million in FTI’s case. California Resources Corporation (NYSE:CRC) is the most popular stock in this table. On the other hand Viper Energy Partners LP (NASDAQ:VNOM) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks TechnipFMC plc (NYSE:FTI) is more popular among hedge funds. Our overall hedge fund sentiment score for FTI is 78. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately FTI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FTI were disappointed as the stock returned -13.8% since the end of the third quarter (through 12/9) 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 most of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.