Is CNH Industrial NV (NYSE:CNHI) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
CNH Industrial NV (NYSE:CNHI) investors should be aware of an increase in enthusiasm from smart money of late. CNH Industrial NV (NYSE:CNHI) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 24. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 24 hedge funds in our database with CNHI holdings at the end of June. Our calculations also showed that CNHI 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 take a peek at the latest hedge fund action surrounding CNH Industrial NV (NYSE:CNHI).
Mario Gabelli of GAMCO Investors
Do Hedge Funds Think CNHI Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards CNHI over the last 25 quarters. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
The largest stake in CNH Industrial NV (NYSE:CNHI) was held by Arrowstreet Capital, which reported holding $235.4 million worth of stock at the end of September. It was followed by GAMCO Investors with a $166 million position. Other investors bullish on the company included Southpoint Capital Advisors, Balyasny Asset Management, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Odey Asset Management Group allocated the biggest weight to CNH Industrial NV (NYSE:CNHI), around 5.1% of its 13F portfolio. Southpoint Capital Advisors is also relatively very bullish on the stock, setting aside 3.38 percent of its 13F equity portfolio to CNHI.
As one would reasonably expect, specific money managers have been driving this bullishness. Southpoint Capital Advisors, managed by John Smith Clark, established the biggest position in CNH Industrial NV (NYSE:CNHI). Southpoint Capital Advisors had $158.3 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $9.7 million position during the quarter. The following funds were also among the new CNHI investors: Alexander Mitchell’s Scopus Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s go over hedge fund activity in other stocks similar to CNH Industrial NV (NYSE:CNHI). These stocks are Extra Space Storage, Inc. (NYSE:EXR), Northern Trust Corporation (NASDAQ:NTRS), XP Inc. (NASDAQ:XP), Vulcan Materials Company (NYSE:VMC), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Dover Corporation (NYSE:DOV), and Zillow Group Inc (NASDAQ:Z). This group of stocks’ market values are closest to CNHI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EXR | 27 | 405036 | 6 |
| NTRS | 34 | 535076 | 2 |
| XP | 28 | 674196 | 3 |
| VMC | 43 | 1923351 | 0 |
| ALNY | 40 | 1030395 | 7 |
| DOV | 32 | 351286 | 3 |
| Z | 67 | 4251493 | -9 |
| Average | 38.7 | 1310119 | 1.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.7 hedge funds with bullish positions and the average amount invested in these stocks was $1310 million. That figure was $909 million in CNHI’s case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand Extra Space Storage, Inc. (NYSE:EXR) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks CNH Industrial NV (NYSE:CNHI) is even less popular than EXR. Our overall hedge fund sentiment score for CNHI is 36. 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. Hedge funds dodged a bullet by taking a bearish stance towards CNHI. Our calculations showed that the top 5 most popular hedge fund stocks 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 but managed to beat the market again by 5.1 percentage points. Unfortunately CNHI wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); CNHI investors were disappointed as the stock returned 7.3% 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.
Follow Cnh Industrial N.v. (NYSE:CNHI)
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Disclosure: None. This article was originally published at Insider Monkey.
