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 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31 holdings, data that is available nowhere else. Should you consider Aquantia Corp. (NYSE:AQ) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is Aquantia Corp. (NYSE:AQ) the right investment to pursue these days? Money managers are turning bullish. The number of long hedge fund bets moved up by 6 in recent months. Our calculations also showed that aq isn’t among the 30 most popular stocks among hedge funds. AQ was in 13 hedge funds’ portfolios at the end of March. There were 7 hedge funds in our database with AQ holdings at the end of the previous quarter.
In today’s marketplace there are many indicators stock market investors employ to value their holdings. A pair of the most under-the-radar indicators are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the best investment managers can outperform the broader indices by a healthy margin (see the details here).
We’re going to take a glance at the recent hedge fund action encompassing Aquantia Corp. (NYSE:AQ).
How have hedgies been trading Aquantia Corp. (NYSE:AQ)?
Heading into the second quarter of 2019, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 86% from the previous quarter. On the other hand, there were a total of 2 hedge funds with a bullish position in AQ a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Masters Capital Management held the most valuable stake in Aquantia Corp. (NYSE:AQ), which was worth $11 million at the end of the first quarter. On the second spot was Millennium Management which amassed $3.4 million worth of shares. Moreover, Renaissance Technologies, Jasper Ridge Partners, and D E Shaw were also bullish on Aquantia Corp. (NYSE:AQ), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, key hedge funds have been driving this bullishness. D E Shaw, managed by D. E. Shaw, established the biggest position in Aquantia Corp. (NYSE:AQ). D E Shaw had $1.3 million invested in the company at the end of the quarter. Brett Hendrickson’s Nokomis Capital also made a $0.4 million investment in the stock during the quarter. The other funds with brand new AQ positions are Ken Griffin’s Citadel Investment Group, Peter Muller’s PDT Partners, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s go over hedge fund activity in other stocks similar to Aquantia Corp. (NYSE:AQ). These stocks are Westwood Holdings Group, Inc. (NYSE:WHG), DSP Group, Inc. (NASDAQ:DSPG), Park Electrochemical Corp. (NYSE:PKE), and Aduro BioTech Inc (NASDAQ:ADRO). This group of stocks’ market values are closest to AQ’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WHG | 11 | 52054 | 2 |
| DSPG | 13 | 78336 | 0 |
| PKE | 10 | 71997 | 1 |
| ADRO | 12 | 22456 | 5 |
| Average | 11.5 | 56211 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was $22 million in AQ’s case. DSP Group, Inc. (NASDAQ:DSPG) is the most popular stock in this table. On the other hand Park Electrochemical Corp. (NYSE:PKE) is the least popular one with only 10 bullish hedge fund positions. Aquantia Corp. (NYSE:AQ) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on AQ as the stock returned 44.2% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.