The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Opera Limited (NASDAQ:OPRA).
Opera Limited (NASDAQ:OPRA) was in 13 hedge funds’ portfolios at the end of the third quarter of 2019. OPRA has seen an increase in hedge fund interest lately. There were 6 hedge funds in our database with OPRA positions at the end of the previous quarter. Our calculations also showed that OPRA 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 financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
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 take a glance at the new hedge fund action regarding Opera Limited (NASDAQ:OPRA).
What does smart money think about Opera Limited (NASDAQ:OPRA)?
At Q3’s end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 117% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in OPRA over the last 17 quarters. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Park West Asset Management, managed by Peter S. Park, holds the most valuable position in Opera Limited (NASDAQ:OPRA). Park West Asset Management has a $14 million position in the stock, comprising 0.7% of its 13F portfolio. The second most bullish fund manager is CSat Investment Advisory, managed by Claes Fornell, which holds a $2.7 million position; 0.9% of its 13F portfolio is allocated to the stock. Some other members of the smart money that are bullish contain Hugh Sloane’s Sloane Robinson Investment Management, Ken Griffin’s Citadel Investment Group and David Halpert’s Prince Street Capital Management. In terms of the portfolio weights assigned to each position Sloane Robinson Investment Management allocated the biggest weight to Opera Limited (NASDAQ:OPRA), around 1.1% of its 13F portfolio. Prince Street Capital Management is also relatively very bullish on the stock, dishing out 1.01 percent of its 13F equity portfolio to OPRA.
Consequently, some big names were breaking ground themselves. Prince Street Capital Management, managed by David Halpert, established the most valuable position in Opera Limited (NASDAQ:OPRA). Prince Street Capital Management had $1.6 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $1.1 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Paul Marshall and Ian Wace’s Marshall Wace, and Renaissance Technologies.
Let’s now take a look at hedge fund activity in other stocks similar to Opera Limited (NASDAQ:OPRA). These stocks are Five Point Holdings, LLC (NYSE:FPH), Oasis Petroleum Inc. (NYSE:OAS), Ra Pharmaceuticals, Inc. (NASDAQ:RARX), and Career Education Corp. (NASDAQ:CECO). All of these stocks’ market caps match OPRA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FPH | 14 | 255856 | 0 |
| OAS | 15 | 160691 | -6 |
| RARX | 21 | 320734 | 3 |
| CECO | 22 | 199757 | 0 |
| Average | 18 | 234260 | -0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $234 million. That figure was $27 million in OPRA’s case. Career Education Corp. (NASDAQ:CECO) is the most popular stock in this table. On the other hand Five Point Holdings, LLC (NYSE:FPH) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Opera Limited (NASDAQ:OPRA) is even less popular than FPH. Hedge funds dodged a bullet by taking a bearish stance towards OPRA. 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 OPRA wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); OPRA investors were disappointed as the stock returned 0.9% 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.
