Is Lattice Semiconductor Corporation (NASDAQ:LSCC) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Is Lattice Semiconductor Corporation (NASDAQ:LSCC) the right investment to pursue these days? Hedge funds are turning bullish. The number of bullish hedge fund positions moved up by 4 lately. Our calculations also showed that LSCC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). LSCC was in 24 hedge funds’ portfolios at the end of September. There were 20 hedge funds in our database with LSCC positions at the end of the previous quarter. At the end of this article we will also compare LSCC against its similarly valued stocks such as Tilray, Inc. (NASDAQ:TLRY), Prospect Capital Corporation (NASDAQ:PSEC), Seritage Growth Properties (NYSE:SRG), and Belden Inc. (NYSE:BDC).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
If you’d ask most traders, hedge funds are viewed as slow, outdated investment vehicles of yesteryear. While there are more than 8000 funds with their doors open today, Our experts hone in on the moguls of this club, around 750 funds. These investment experts have their hands on bulk of the smart money’s total asset base, and by tailing their inimitable equity investments, Insider Monkey has revealed several investment strategies that have historically beaten the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points annually since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .
Didric Cederholm of Lion Point Capital
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. We’re going to take a glance at the new hedge fund action surrounding Lattice Semiconductor Corporation (NASDAQ:LSCC).
What have hedge funds been doing with Lattice Semiconductor Corporation (NASDAQ:LSCC)?
Heading into the fourth quarter of 2019, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 20% from the second quarter of 2019. Below, you can check out the change in hedge fund sentiment towards LSCC over the last 17 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Lion Point, managed by Didric Cederholm, holds the most valuable position in Lattice Semiconductor Corporation (NASDAQ:LSCC). Lion Point has a $68.2 million position in the stock, comprising 7.6% of its 13F portfolio. Coming in second is Renaissance Technologies, holding a $49.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include John Overdeck and David Siegel’s Two Sigma Advisors, Kevin Cottrell and Chris LaSusa’s KCL Capital and Joe Milano’s Greenhouse Funds. In terms of the portfolio weights assigned to each position Lion Point allocated the biggest weight to Lattice Semiconductor Corporation (NASDAQ:LSCC), around 7.6% of its portfolio. Greenhouse Funds is also relatively very bullish on the stock, dishing out 3 percent of its 13F equity portfolio to LSCC.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Maplelane Capital, managed by Leon Shaulov, initiated the most valuable position in Lattice Semiconductor Corporation (NASDAQ:LSCC). Maplelane Capital had $8.1 million invested in the company at the end of the quarter. Frank Slattery’s Symmetry Peak Management also made a $3.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Larry Foley and Paul Farrell’s Bronson Point Partners, Michael Gelband’s ExodusPoint Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s go over hedge fund activity in other stocks similar to Lattice Semiconductor Corporation (NASDAQ:LSCC). We will take a look at Tilray, Inc. (NASDAQ:TLRY), Prospect Capital Corporation (NASDAQ:PSEC), Seritage Growth Properties (NYSE:SRG), and Belden Inc. (NYSE:BDC). This group of stocks’ market valuations match LSCC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TLRY | 11 | 19410 | 0 |
| PSEC | 11 | 43044 | 0 |
| SRG | 13 | 432895 | -2 |
| BDC | 13 | 77112 | -2 |
| Average | 12 | 143115 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $233 million in LSCC’s case. Seritage Growth Properties (NYSE:SRG) is the most popular stock in this table. On the other hand Tilray, Inc. (NASDAQ:TLRY) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Lattice Semiconductor Corporation (NASDAQ:LSCC) is more popular among hedge funds. 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 LSCC wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on LSCC were disappointed as the stock returned 3.3% 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.
