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 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Consolidated Edison, Inc. (NYSE:ED) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Consolidated Edison, Inc. (NYSE:ED) investors should pay attention to a decrease in activity from the world’s largest hedge funds of late. Consolidated Edison, Inc. (NYSE:ED) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 32. There were 30 hedge funds in our database with ED positions at the end of the second quarter. Our calculations also showed that ED isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Michael Gelband of ExodusPoint 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. With all of this in mind let’s go over the recent hedge fund action encompassing Consolidated Edison, Inc. (NYSE:ED).
Do Hedge Funds Think ED Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards ED 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.
According to Insider Monkey’s hedge fund database, Electron Capital Partners, managed by Jos Shaver, holds the biggest position in Consolidated Edison, Inc. (NYSE:ED). Electron Capital Partners has a $98.5 million position in the stock, comprising 5.2% of its 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $59.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that hold long positions contain Michael Gelband’s ExodusPoint Capital, Renaissance Technologies and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Coann Capital allocated the biggest weight to Consolidated Edison, Inc. (NYSE:ED), around 7.48% of its 13F portfolio. Electron Capital Partners is also relatively very bullish on the stock, earmarking 5.21 percent of its 13F equity portfolio to ED.
Since Consolidated Edison, Inc. (NYSE:ED) has experienced falling interest from hedge fund managers, it’s safe to say that there were a few fund managers that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Jimmy Levin’s Sculptor Capital dumped the biggest stake of the 750 funds followed by Insider Monkey, totaling about $12.3 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund said goodbye to about $12 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 6 funds in the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Consolidated Edison, Inc. (NYSE:ED) but similarly valued. We will take a look at Albemarle Corporation (NYSE:ALB), ViacomCBS Inc. (NASDAQ:VIAC), Canon Inc. (NYSE:CAJ), Carvana Co. (NYSE:CVNA), Gartner Inc (NYSE:IT), United Rentals, Inc. (NYSE:URI), and ZTO Express (Cayman) Inc. (NYSE:ZTO). All of these stocks’ market caps are similar to ED’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ALB | 38 | 317872 | 10 |
| VIAC | 64 | 1254114 | -7 |
| CAJ | 8 | 64340 | 0 |
| CVNA | 58 | 8309496 | -5 |
| IT | 33 | 2039924 | -6 |
| URI | 37 | 1382415 | -10 |
| ZTO | 20 | 1019859 | -1 |
| Average | 36.9 | 2055431 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 36.9 hedge funds with bullish positions and the average amount invested in these stocks was $2055 million. That figure was $364 million in ED’s case. ViacomCBS Inc. (NASDAQ:VIAC) is the most popular stock in this table. On the other hand Canon Inc. (NYSE:CAJ) is the least popular one with only 8 bullish hedge fund positions. Consolidated Edison, Inc. (NYSE:ED) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ED is 35.8. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on ED as the stock returned 13.6% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
