The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 867 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Corteva, Inc. (NYSE:CTVA) based on those filings.
Is Corteva, Inc. (NYSE:CTVA) a good stock to buy now? Money managers were becoming hopeful. The number of long hedge fund bets rose by 7 recently. Corteva, Inc. (NYSE:CTVA) was in 41 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 39. This means the bullish number of hedge fund positions in this stock currently sits at its new all time high. Our calculations also showed that CTVA isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 34 hedge funds in our database with CTVA holdings at the end of June.
Larry Robbins of Glenview Capital
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 we’re going to take a peek at the key hedge fund action surrounding Corteva, Inc. (NYSE:CTVA).
Do Hedge Funds Think CTVA Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 41 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from one quarter earlier. By comparison, 36 hedge funds held shares or bullish call options in CTVA a year ago. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
The largest stake in Corteva, Inc. (NYSE:CTVA) was held by Starboard Value LP, which reported holding $386.8 million worth of stock at the end of September. It was followed by Eminence Capital with a $185.7 million position. Other investors bullish on the company included Sessa Capital, Glenview Capital, and D E Shaw. In terms of the portfolio weights assigned to each position Sessa Capital allocated the biggest weight to Corteva, Inc. (NYSE:CTVA), around 7.47% of its 13F portfolio. Starboard Value LP is also relatively very bullish on the stock, designating 7.08 percent of its 13F equity portfolio to CTVA.
Consequently, specific money managers have been driving this bullishness. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the largest position in Corteva, Inc. (NYSE:CTVA). Marshall Wace LLP had $8.9 million invested in the company at the end of the quarter. Ed Bosek’s BeaconLight Capital also initiated a $3.5 million position during the quarter. The other funds with new positions in the stock are Javier Velazquez’s Albar Capital, Andrew Weiss’s Weiss Asset Management, and Mika Toikka’s AlphaCrest Capital Management.
Let’s go over hedge fund activity in other stocks similar to Corteva, Inc. (NYSE:CTVA). These stocks are Seagen Inc. (NASDAQ:SGEN), Equifax Inc. (NYSE:EFX), McKesson Corporation (NYSE:MCK), Public Service Enterprise Group Incorporated (NYSE:PEG), Suncor Energy Inc. (NYSE:SU), Arthur J. Gallagher & Co. (NYSE:AJG), and American Water Works Company, Inc. (NYSE:AWK). This group of stocks’ market values match CTVA’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SGEN | 40 | 9471190 | 3 |
| EFX | 43 | 3360148 | 6 |
| MCK | 51 | 2277126 | 0 |
| PEG | 26 | 518847 | 0 |
| SU | 32 | 1084858 | 0 |
| AJG | 32 | 1388489 | -8 |
| AWK | 28 | 1127944 | -2 |
| Average | 36 | 2746943 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $2747 million. That figure was $1162 million in CTVA’s case. McKesson Corporation (NYSE:MCK) is the most popular stock in this table. On the other hand Public Service Enterprise Group Incorporated (NYSE:PEG) is the least popular one with only 26 bullish hedge fund positions. Corteva, Inc. (NYSE:CTVA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CTVA is 70. 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 CTVA as the stock returned 7.3% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Corteva Inc. (NYSE:CTVA)
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Disclosure: None. This article was originally published at Insider Monkey.
