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. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. What do these smart investors think about Delphi Technologies PLC (NYSE:DLPH)?
Is Delphi Technologies PLC (NYSE:DLPH) ready to rally soon? Hedge funds are becoming hopeful. The number of long hedge fund bets increased by 2 in recent months. Our calculations also showed that DLPH isn’t among the 30 most popular stocks among hedge funds (click for Q1 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.
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 was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 58 percentage points since March 2017 (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 36% through May 18th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Clint Carlson of Carlson Capital
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. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we’re going to take a gander at the fresh hedge fund action surrounding Delphi Technologies PLC (NYSE:DLPH).
How are hedge funds trading Delphi Technologies PLC (NYSE:DLPH)?
Heading into the second quarter of 2020, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in DLPH over the last 18 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Delphi Technologies PLC (NYSE:DLPH) was held by Magnetar Capital, which reported holding $25.3 million worth of stock at the end of September. It was followed by Alpine Associates with a $17.4 million position. Other investors bullish on the company included D E Shaw, TIG Advisors, and Water Island Capital. In terms of the portfolio weights assigned to each position Water Island Capital allocated the biggest weight to Delphi Technologies PLC (NYSE:DLPH), around 0.79% of its 13F portfolio. Alpine Associates is also relatively very bullish on the stock, earmarking 0.69 percent of its 13F equity portfolio to DLPH.
As one would reasonably expect, specific money managers have been driving this bullishness. Magnetar Capital, managed by Alec Litowitz and Ross Laser, established the most valuable position in Delphi Technologies PLC (NYSE:DLPH). Magnetar Capital had $25.3 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also made a $17.4 million investment in the stock during the quarter. The following funds were also among the new DLPH investors: Carl Tiedemann and Michael Tiedemann’s TIG Advisors, John Orrico’s Water Island Capital, and Clint Carlson’s Carlson Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Delphi Technologies PLC (NYSE:DLPH) but similarly valued. These stocks are Sculptor Capital Management, Inc. (NYSE:SCU), Xperi Corporation (NASDAQ:XPER), Republic Bancorp, Inc. KY (NASDAQ:RBCAA), and GreenSky, Inc. (NASDAQ:GSKY). This group of stocks’ market caps are closest to DLPH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SCU | 12 | 72077 | 0 |
| XPER | 20 | 108532 | -3 |
| RBCAA | 5 | 8845 | -3 |
| GSKY | 9 | 14686 | -3 |
| Average | 11.5 | 51035 | -2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $106 million in DLPH’s case. Xperi Corporation (NASDAQ:XPER) is the most popular stock in this table. On the other hand Republic Bancorp, Inc. KY (NASDAQ:RBCAA) is the least popular one with only 5 bullish hedge fund positions. Delphi Technologies PLC (NYSE:DLPH) is not the most popular stock in this group but hedge fund interest is still above average. 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 13.4% in 2020 through June 22nd but still beat the market by 15.9 percentage points. Hedge funds were also right about betting on DLPH as the stock returned 72.7% in Q2 (through June 22nd) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Delphi Technologies Plc (NYSE:DLPH)
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Disclosure: None. This article was originally published at Insider Monkey.
