After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Aptiv PLC (NYSE:APTV).
Aptiv PLC (NYSE:APTV) was in 44 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 50. APTV investors should pay attention to an increase in support from the world’s most elite money managers in recent months. There were 40 hedge funds in our database with APTV positions at the end of the second quarter. Our calculations also showed that APTV isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Dan Loeb of Third Point
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. 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 let’s analyze the key hedge fund action surrounding Aptiv PLC (NYSE:APTV).
Do Hedge Funds Think APTV Is A Good Stock To Buy Now?
At the end of September, a total of 44 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from one quarter earlier. By comparison, 38 hedge funds held shares or bullish call options in APTV 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 Aptiv PLC (NYSE:APTV) was held by Impax Asset Management, which reported holding $563.2 million worth of stock at the end of September. It was followed by Third Point with a $193.7 million position. Other investors bullish on the company included Glenview Capital, Holocene Advisors, and Polar Capital. In terms of the portfolio weights assigned to each position Caxton Associates LP allocated the biggest weight to Aptiv PLC (NYSE:APTV), around 9.88% of its 13F portfolio. Jade Capital Advisors is also relatively very bullish on the stock, setting aside 2.61 percent of its 13F equity portfolio to APTV.
As aggregate interest increased, key money managers have been driving this bullishness. Candlestick Capital Management, managed by Jack Woodruff, assembled the largest position in Aptiv PLC (NYSE:APTV). Candlestick Capital Management had $61.8 million invested in the company at the end of the quarter. Zach Schreiber’s Point State Capital also initiated a $48.9 million position during the quarter. The other funds with brand new APTV positions are Alexander Mitchell’s Scopus Asset Management, Michael Gelband’s ExodusPoint Capital, and Javier Velazquez’s Albar Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Aptiv PLC (NYSE:APTV) but similarly valued. These stocks are Baxter International Inc. (NYSE:BAX), SYSCO Corporation (NYSE:SYY), STMicroelectronics N.V. (NYSE:STM), Cintas Corporation (NASDAQ:CTAS), Marathon Petroleum Corp (NYSE:MPC), Alcon Inc. (NYSE:ALC), and Motorola Solutions Inc (NYSE:MSI). This group of stocks’ market caps are closest to APTV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BAX | 42 | 3485785 | -4 |
| SYY | 29 | 2245599 | -11 |
| STM | 11 | 49115 | -2 |
| CTAS | 36 | 781970 | 15 |
| MPC | 43 | 2688865 | -5 |
| ALC | 20 | 1263277 | -2 |
| MSI | 34 | 1266185 | -3 |
| Average | 30.7 | 1682971 | -1.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.7 hedge funds with bullish positions and the average amount invested in these stocks was $1683 million. That figure was $1757 million in APTV’s case. Marathon Petroleum Corp (NYSE:MPC) is the most popular stock in this table. On the other hand STMicroelectronics N.V. (NYSE:STM) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Aptiv PLC (NYSE:APTV) is more popular among hedge funds. Our overall hedge fund sentiment score for APTV is 85.4. 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. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on APTV as the stock returned 7.6% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Aptiv Plc (NYSE:APTV)
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Disclosure: None. This article was originally published at Insider Monkey.
