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 at Insider Monkey have plowed through 752 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Portland General Electric Company (NYSE:POR).
Portland General Electric Company (NYSE:POR) has seen an increase in activity from the world’s largest hedge funds in recent months. Our calculations also showed that POR 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.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the Russell 2000 ETFs by 40 percentage points since May 2014 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 27.8% through November 21, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Paul Tudor Jones of Tudor Investment Corp
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. Let’s analyze the new hedge fund action regarding Portland General Electric Company (NYSE:POR).
How are hedge funds trading Portland General Electric Company (NYSE:POR)?
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 28% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in POR over the last 17 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Renaissance Technologies was the largest shareholder of Portland General Electric Company (NYSE:POR), with a stake worth $146.8 million reported as of the end of September. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $61.5 million. Carlson Capital, GLG Partners, and ExodusPoint Capital 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 Shelter Harbor Advisors allocated the biggest weight to Portland General Electric Company (NYSE:POR), around 2.14% of its 13F portfolio. ExodusPoint Capital is also relatively very bullish on the stock, earmarking 1.08 percent of its 13F equity portfolio to POR.
Now, key hedge funds were breaking ground themselves. Tudor Investment Corp, managed by Paul Tudor Jones, initiated the most outsized position in Portland General Electric Company (NYSE:POR). Tudor Investment Corp had $2.1 million invested in the company at the end of the quarter. Minhua Zhang’s Weld Capital Management also initiated a $1.1 million position during the quarter. The other funds with brand new POR positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, David Harding’s Winton Capital Management, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s go over hedge fund activity in other stocks similar to Portland General Electric Company (NYSE:POR). These stocks are Science Applications International Corp (NYSE:SAIC), MKS Instruments, Inc. (NASDAQ:MKSI), Capri Holdings Limited (NYSE:CPRI), and First Industrial Realty Trust, Inc. (NYSE:FR). This group of stocks’ market caps are closest to POR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAIC | 24 | 350974 | -2 |
| MKSI | 17 | 411513 | -2 |
| CPRI | 37 | 920218 | 2 |
| FR | 16 | 240768 | -2 |
| Average | 23.5 | 480868 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $481 million. That figure was $391 million in POR’s case. Capri Holdings Limited (NYSE:CPRI) is the most popular stock in this table. On the other hand First Industrial Realty Trust, Inc. (NYSE:FR) is the least popular one with only 16 bullish hedge fund positions. Portland General Electric Company (NYSE:POR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately POR wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); POR investors were disappointed as the stock returned -1.5% during the first two months of the fourth quarter 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 in Q4.
Disclosure: None. This article was originally published at Insider Monkey.
