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 MongoDB, Inc. (NASDAQ:MDB) based on that data and determine whether they were really smart about the stock.
MongoDB, Inc. (NASDAQ:MDB) shareholders have witnessed an increase in enthusiasm from smart money lately. MongoDB, Inc. (NASDAQ:MDB) was in 37 hedge funds’ portfolios at the end of June. The all time high for this statistics is 34. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 30 hedge funds in our database with MDB holdings at the end of March. Our calculations also showed that MDB 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.
Today there are many metrics stock market investors can use to grade stocks. A couple of the most innovative metrics are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can trounce the broader indices by a very impressive margin (see the details here).
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock. Legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. 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. Keeping this in mind we’re going to review the key hedge fund action surrounding MongoDB, Inc. (NASDAQ:MDB).
Hedge fund activity in MongoDB, Inc. (NASDAQ:MDB)
Heading into the third quarter of 2020, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 23% from one quarter earlier. By comparison, 34 hedge funds held shares or bullish call options in MDB a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in MongoDB, Inc. (NASDAQ:MDB) was held by Tiger Global Management LLC, which reported holding $432.6 million worth of stock at the end of September. It was followed by Whale Rock Capital Management with a $267.3 million position. Other investors bullish on the company included SQN Investors, Altimeter Capital Management, and Citadel Investment Group. In terms of the portfolio weights assigned to each position SQN Investors allocated the biggest weight to MongoDB, Inc. (NASDAQ:MDB), around 10.42% of its 13F portfolio. Whetstone Capital Advisors is also relatively very bullish on the stock, designating 8.01 percent of its 13F equity portfolio to MDB.
As one would reasonably expect, key money managers were leading the bulls’ herd. Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, assembled the most valuable position in MongoDB, Inc. (NASDAQ:MDB). Polar Capital had $17.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $14.4 million position during the quarter. The following funds were also among the new MDB investors: Principal Global Investors’s Columbus Circle Investors, Noam Gottesman’s GLG Partners, and Dipak Patel’s Alight Capital.
Let’s check out hedge fund activity in other stocks similar to MongoDB, Inc. (NASDAQ:MDB). We will take a look at Tradeweb Markets Inc. (NASDAQ:TW), Mid America Apartment Communities Inc (NYSE:MAA), Liberty Global plc (NASDAQ:LBTYA), International Flavors & Fragrances Inc (NYSE:IFF), Duke Realty Corporation (NYSE:DRE), Steris Plc (NYSE:STE), and EXACT Sciences Corporation (NASDAQ:EXAS). This group of stocks’ market valuations are closest to MDB’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TW | 33 | 346714 | 3 |
| MAA | 30 | 503965 | 4 |
| LBTYA | 29 | 1048280 | -1 |
| IFF | 31 | 234080 | 3 |
| DRE | 19 | 102859 | 3 |
| STE | 40 | 545240 | 5 |
| EXAS | 43 | 993223 | 9 |
| Average | 32.1 | 539194 | 3.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.1 hedge funds with bullish positions and the average amount invested in these stocks was $539 million. That figure was $1248 million in MDB’s case. EXACT Sciences Corporation (NASDAQ:EXAS) is the most popular stock in this table. On the other hand Duke Realty Corporation (NYSE:DRE) is the least popular one with only 19 bullish hedge fund positions. MongoDB, Inc. (NASDAQ:MDB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MDB is 77.5. 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 MDB wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on MDB were disappointed as the stock returned 3.3% 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.
