The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Enel Chile S.A. (NYSE:ENIC).
Enel Chile S.A. (NYSE:ENIC) shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. Our calculations also showed that ENIC 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.
To the average investor there are a large number of tools shareholders have at their disposal to grade stocks. A pair of the less known tools are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace the market by a solid amount (see the details here).
Ken Griffin of Citadel Investment Group
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds‘ buy/sell signals. Let’s view the recent hedge fund action encompassing Enel Chile S.A. (NYSE:ENIC).
How have hedgies been trading Enel Chile S.A. (NYSE:ENIC)?
At the end of the third quarter, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from one quarter earlier. On the other hand, there were a total of 4 hedge funds with a bullish position in ENIC a year ago. 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, AQR Capital Management was the largest shareholder of Enel Chile S.A. (NYSE:ENIC), with a stake worth $7.8 million reported as of the end of September. Trailing AQR Capital Management was Renaissance Technologies, which amassed a stake valued at $7.1 million. Arrowstreet Capital, D E Shaw, and Millennium 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 Arrowstreet Capital allocated the biggest weight to Enel Chile S.A. (NYSE:ENIC), around 0.01% of its 13F portfolio. AQR Capital Management is also relatively very bullish on the stock, dishing out 0.01 percent of its 13F equity portfolio to ENIC.
As aggregate interest increased, key money managers were leading the bulls’ herd. Paloma Partners, managed by Donald Sussman, initiated the biggest position in Enel Chile S.A. (NYSE:ENIC). Paloma Partners had $0.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is Matthew Tewksbury’s Stevens Capital Management.
Let’s now review hedge fund activity in other stocks similar to Enel Chile S.A. (NYSE:ENIC). We will take a look at Wix.Com Ltd (NASDAQ:WIX), Versum Materials, Inc. (NYSE:VSM), Gardner Denver Holdings, Inc. (NYSE:GDI), and SYNNEX Corporation (NYSE:SNX). All of these stocks’ market caps resemble ENIC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WIX | 31 | 986992 | 5 |
| VSM | 31 | 1007124 | -5 |
| GDI | 15 | 379484 | -9 |
| SNX | 21 | 225461 | 3 |
| Average | 24.5 | 649765 | -1.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.5 hedge funds with bullish positions and the average amount invested in these stocks was $650 million. That figure was $26 million in ENIC’s case. Wix.Com Ltd (NASDAQ:WIX) is the most popular stock in this table. On the other hand Gardner Denver Holdings, Inc. (NYSE:GDI) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Enel Chile S.A. (NYSE:ENIC) is even less popular than GDI. Hedge funds dodged a bullet by taking a bearish stance towards ENIC. Our calculations showed that the top 20 most popular hedge fund stocks returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately ENIC wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); ENIC investors were disappointed as the stock returned -10.9% 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 70 percent of these stocks already outperformed the market so far in Q4.
Disclosure: None. This article was originally published at Insider Monkey.
