Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Ford Motor Company (NYSE:F) based on that data.
Ford Motor Company (NYSE:F) shareholders have witnessed a decrease in hedge fund sentiment in recent months. Ford Motor Company (NYSE:F) was in 51 hedge funds’ portfolios at the end of September. The all time high for this statistic is 55. There were 55 hedge funds in our database with F holdings at the end of June. Our calculations also showed that F 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. Keeping this in mind let’s take a gander at the fresh hedge fund action regarding Ford Motor Company (NYSE:F).
Ken Griffin of Citadel Investment Group
Do Hedge Funds Think F Is A Good Stock To Buy Now?
At Q3’s end, a total of 51 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -7% from the previous quarter. The graph below displays the number of hedge funds with bullish position in F over the last 25 quarters. So, let’s review 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, D E Shaw, managed by D. E. Shaw, holds the number one position in Ford Motor Company (NYSE:F). D E Shaw has a $422.4 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Pzena Investment Management, led by Richard S. Pzena, holding a $342.7 million position; 1.4% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors with similar optimism comprise Ken Griffin’s Citadel Investment Group, and Jack Woodruff’s Candlestick Capital Management. In terms of the portfolio weights assigned to each position Lodge Hill Capital allocated the biggest weight to Ford Motor Company (NYSE:F), around 4.28% of its 13F portfolio. Harvey Partners is also relatively very bullish on the stock, dishing out 4.18 percent of its 13F equity portfolio to F.
Due to the fact that Ford Motor Company (NYSE:F) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedgies that elected to cut their positions entirely last quarter. Intriguingly, Panayotis Takis Sparaggis’s Alkeon Capital Management dropped the biggest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $224 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also dumped its stock, about $61 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds last quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Ford Motor Company (NYSE:F) but similarly valued. We will take a look at ING Groep N.V. (NYSE:ING), Twilio Inc. (NYSE:TWLO), Emerson Electric Co. (NYSE:EMR), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Relx PLC (NYSE:RELX), UBS Group AG (NYSE:UBS), and General Dynamics Corporation (NYSE:GD). This group of stocks’ market caps match F’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ING | 8 | 693351 | -1 |
| TWLO | 96 | 6369513 | -2 |
| EMR | 41 | 671007 | -4 |
| CRWD | 74 | 6742307 | 8 |
| RELX | 7 | 66312 | 1 |
| UBS | 15 | 166803 | 0 |
| GD | 36 | 6719691 | -1 |
| Average | 39.6 | 3061283 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 39.6 hedge funds with bullish positions and the average amount invested in these stocks was $3061 million. That figure was $1642 million in F’s case. Twilio Inc. (NYSE:TWLO) is the most popular stock in this table. On the other hand Relx PLC (NYSE:RELX) is the least popular one with only 7 bullish hedge fund positions. Ford Motor Company (NYSE:F) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for F is 53.5. 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 F as the stock returned 36.2% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
