Here is What Hedge Funds Think About The Liberty SiriusXM Group (LSXMA)

Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards The Liberty SiriusXM Group (NASDAQ:LSXMA).

Is The Liberty SiriusXM Group (NASDAQ:LSXMA) a bargain? The best stock pickers were in an optimistic mood. The number of bullish hedge fund bets increased by 5 lately. The Liberty SiriusXM Group (NASDAQ:LSXMA) was in 43 hedge funds’ portfolios at the end of June. The all time high for this statistic is 50. Our calculations also showed that LSXMA isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 38 hedge funds in our database with LSXMA positions at the end of the first quarter.

If you’d ask most investors, hedge funds are assumed to be unimportant, old investment vehicles of years past. While there are over 8000 funds trading today, We look at the aristocrats of this group, about 850 funds. These investment experts orchestrate the majority of all hedge funds’ total capital, and by monitoring their finest investments, Insider Monkey has figured out various investment strategies that have historically outperformed the broader indices. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Charles Davidson of Wexford Capital

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, artificial intelligence is one of the fastest-growing industries right now, so we are checking out stock pitches like this emerging AI stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s take a peek at the key hedge fund action surrounding The Liberty SiriusXM Group (NASDAQ:LSXMA).

Do Hedge Funds Think LSXMA Is A Good Stock To Buy Now?

Heading into the third quarter of 2021, a total of 43 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in LSXMA over the last 24 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in The Liberty SiriusXM Group (NASDAQ:LSXMA) was held by Berkshire Hathaway, which reported holding $692.2 million worth of stock at the end of June. It was followed by D E Shaw with a $195.5 million position. Other investors bullish on the company included Baupost Group, Citadel Investment Group, and Corvex Capital. In terms of the portfolio weights assigned to each position Raging Capital Management allocated the biggest weight to The Liberty SiriusXM Group (NASDAQ:LSXMA), around 35.6% of its 13F portfolio. Isomer Partners is also relatively very bullish on the stock, dishing out 4.83 percent of its 13F equity portfolio to LSXMA.

As industrywide interest jumped, specific money managers have jumped into The Liberty SiriusXM Group (NASDAQ:LSXMA) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, established the largest position in The Liberty SiriusXM Group (NASDAQ:LSXMA). Adage Capital Management had $32.6 million invested in the company at the end of the quarter. Michael Rockefeller and KarláKroeker’s Woodline Partners also made a $18.6 million investment in the stock during the quarter. The following funds were also among the new LSXMA investors: Simon Sadler’s Segantii Capital, Charles Davidson and Joseph Jacobs’s Wexford Capital, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as The Liberty SiriusXM Group (NASDAQ:LSXMA) but similarly valued. We will take a look at XPO Logistics Inc (NYSE:XPO), NICE Ltd (NASDAQ:NICE), Westinghouse Air Brake Technologies Corporation (NYSE:WAB), Textron Inc. (NYSE:TXT), Discovery Inc. (NASDAQ:DISCA), Enel Americas S.A. (NYSE:ENIA), and argenx SE (NASDAQ:ARGX). This group of stocks’ market values resemble LSXMA’s market value.

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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 $1436 million. That figure was $1927 million in LSXMA’s case. XPO Logistics Inc (NYSE:XPO) is the most popular stock in this table. On the other hand Enel Americas S.A. (NYSE:ENIA) is the least popular one with only 7 bullish hedge fund positions. The Liberty SiriusXM Group (NASDAQ:LSXMA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for LSXMA is 71.8. 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 gained 22.9% in 2021 through October 1st and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on LSXMA as the stock returned 2.8% since the end of Q2 (through 10/1) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.