Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the second quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of CACI International Inc (NYSE:CACI) based on that data and determine whether they were really smart about the stock.
CACI International Inc (NYSE:CACI) investors should be aware of an increase in enthusiasm from smart money recently. CACI International Inc (NYSE:CACI) was in 34 hedge funds’ portfolios at the end of the second quarter of 2020. The all time high for this statistics is 29. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CACI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To most investors, hedge funds are viewed as slow, old financial tools of yesteryear. While there are over 8000 funds trading today, Our experts choose to focus on the upper echelon of this club, about 850 funds. These money managers command the lion’s share of the smart money’s total capital, and by tracking their best picks, Insider Monkey has discovered many investment strategies that have historically outperformed Mr. Market. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 34% since February 2017 (through August 17th) even though the market was up 53% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
Israel Englander of Millennium Management
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, this “mom” trader turned $2000 into $2 million within 2 years. So, we are checking out her best trade idea of the month. Cannabis stocks are roaring back in 2020, which is why we are also checking out this under-the-radar stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s review the key hedge fund action surrounding CACI International Inc (NYSE:CACI).
What does smart money think about CACI International Inc (NYSE:CACI)?
At second quarter’s end, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 36% from the first quarter of 2020. On the other hand, there were a total of 29 hedge funds with a bullish position in CACI a year ago. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Murray Stahl’s Horizon Asset Management has the most valuable position in CACI International Inc (NYSE:CACI), worth close to $85.2 million, comprising 3.1% of its total 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $68.3 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish comprise Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Alexander Mitchell’s Scopus Asset Management. In terms of the portfolio weights assigned to each position Lunia Capital allocated the biggest weight to CACI International Inc (NYSE:CACI), around 3.9% of its 13F portfolio. Horizon Asset Management is also relatively very bullish on the stock, setting aside 3.08 percent of its 13F equity portfolio to CACI.
Consequently, specific money managers have jumped into CACI International Inc (NYSE:CACI) headfirst. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), assembled the most outsized position in CACI International Inc (NYSE:CACI). Schonfeld Strategic Advisors had $8 million invested in the company at the end of the quarter. Donald Sussman’s Paloma Partners also made a $3 million investment in the stock during the quarter. The other funds with brand new CACI positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Asad Rahman and Aman Kapadia’s Akaris Global Partners, and Seth Cogswell’s Running Oak Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as CACI International Inc (NYSE:CACI) but similarly valued. These stocks are Pearson PLC (NYSE:PSO), Arrow Electronics, Inc. (NYSE:ARW), Quanta Services Inc (NYSE:PWR), BWX Technologies Inc (NYSE:BWXT), Reinsurance Group of America Inc (NYSE:RGA), Douglas Emmett, Inc. (NYSE:DEI), and Dunkin Brands Group Inc (NASDAQ:DNKN). This group of stocks’ market values are similar to CACI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PSO | 7 | 14870 | -1 |
| ARW | 29 | 531930 | 6 |
| PWR | 31 | 624315 | 3 |
| BWXT | 27 | 141453 | 3 |
| RGA | 33 | 240555 | 3 |
| DEI | 27 | 699337 | 5 |
| DNKN | 35 | 416764 | 1 |
| Average | 27 | 381318 | 2.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $381 million. That figure was $396 million in CACI’s case. Dunkin Brands Group Inc (NASDAQ:DNKN) is the most popular stock in this table. On the other hand Pearson PLC (NYSE:PSO) is the least popular one with only 7 bullish hedge fund positions. CACI International Inc (NYSE:CACI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CACI is 88.2. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 33% in 2020 through the end of August and beat the market by 23.2 percentage points. Unfortunately CACI wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on CACI were disappointed as the stock returned 8% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
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Disclosure: None. This article was originally published at Insider Monkey.
