Is Invesco Ltd. (NYSE:IVZ) 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.
Invesco Ltd. (NYSE:IVZ) investors should pay attention to an increase in support from the world’s most elite money managers lately. Our calculations also showed that IVZ isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the eyes of most shareholders, hedge funds are assumed to be unimportant, outdated investment vehicles of years past. While there are greater than 8000 funds with their doors open at present, We look at the crème de la crème of this group, approximately 750 funds. These hedge fund managers control the majority of the smart money’s total capital, and by observing their unrivaled picks, Insider Monkey has brought to light several investment strategies that have historically beaten the broader indices. Insider Monkey’s flagship short hedge fund strategy outstripped the S&P 500 short ETFs by around 20 percentage points per year since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .
Ken Griffin of Citadel Investment Group
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. We’re going to take a look at the latest hedge fund action surrounding Invesco Ltd. (NYSE:IVZ).
What does smart money think about Invesco Ltd. (NYSE:IVZ)?
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards IVZ over the last 17 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Citadel Investment Group was the largest shareholder of Invesco Ltd. (NYSE:IVZ), with a stake worth $57.7 million reported as of the end of September. Trailing Citadel Investment Group was Pzena Investment Management, which amassed a stake valued at $44.6 million. Bridgewater Associates, Arrowstreet Capital, and D E Shaw 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 Valueworks LLC allocated the biggest weight to Invesco Ltd. (NYSE:IVZ), around 4.39% of its portfolio. Pzena Investment Management is also relatively very bullish on the stock, dishing out 0.24 percent of its 13F equity portfolio to IVZ.
Consequently, key money managers were leading the bulls’ herd. Bridgewater Associates, managed by Ray Dalio, initiated the biggest position in Invesco Ltd. (NYSE:IVZ). Bridgewater Associates had $25.9 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $1.6 million investment in the stock during the quarter. The following funds were also among the new IVZ investors: Matthew Hulsizer’s PEAK6 Capital Management, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s check out hedge fund activity in other stocks similar to Invesco Ltd. (NYSE:IVZ). We will take a look at Canopy Growth Corporation (NYSE:CGC), Ares Capital Corporation (NASDAQ:ARCC), Coty Inc (NYSE:COTY), and Masimo Corporation (NASDAQ:MASI). This group of stocks’ market valuations are similar to IVZ’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CGC | 8 | 23222 | 4 |
| ARCC | 21 | 225163 | -2 |
| COTY | 22 | 138577 | 3 |
| MASI | 27 | 200916 | -1 |
| Average | 19.5 | 146970 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $147 million. That figure was $198 million in IVZ’s case. Masimo Corporation (NASDAQ:MASI) is the most popular stock in this table. On the other hand Canopy Growth Corporation (NYSE:CGC) is the least popular one with only 8 bullish hedge fund positions. Invesco Ltd. (NYSE:IVZ) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately IVZ wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on IVZ were disappointed as the stock returned 5.5% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.
