Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of December. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is SemGroup Corp (NYSE:SEMG), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
SemGroup Corp (NYSE:SEMG) investors should pay attention to an increase in activity from the world’s largest hedge funds lately. Our calculations also showed that semg isn’t among the 30 most popular stocks among hedge funds.
To most shareholders, hedge funds are assumed to be unimportant, outdated investment tools of years past. While there are over 8000 funds with their doors open at present, Our researchers look at the moguls of this club, about 750 funds. These investment experts administer the lion’s share of the hedge fund industry’s total asset base, and by monitoring their highest performing investments, Insider Monkey has unsheathed several investment strategies that have historically outrun the market. Insider Monkey’s flagship hedge fund strategy beat the S&P 500 index by nearly 5 percentage points a year since its inception in May 2014 through early November 2018. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 27.5% since February 2017 (through March 12th) even though the market was up nearly 25% during the same period. We just shared a list of 6 short targets in our latest quarterly update and they are already down an average of 6% in less than a month.
We’re going to go over the key hedge fund action surrounding SemGroup Corp (NYSE:SEMG).
Hedge fund activity in SemGroup Corp (NYSE:SEMG)
At Q4’s end, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 71% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SEMG over the last 14 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, PAR Capital Management held the most valuable stake in SemGroup Corp (NYSE:SEMG), which was worth $9.8 million at the end of the fourth quarter. On the second spot was Millennium Management which amassed $7.9 million worth of shares. Moreover, Renaissance Technologies, Point72 Asset Management, and Highland Capital Management were also bullish on SemGroup Corp (NYSE:SEMG), allocating a large percentage of their portfolios to this stock.
As aggregate interest increased, key hedge funds have been driving this bullishness. Point72 Asset Management, managed by Steve Cohen, established the most outsized position in SemGroup Corp (NYSE:SEMG). Point72 Asset Management had $4.2 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $2.3 million investment in the stock during the quarter. The following funds were also among the new SEMG investors: Israel Englander’s Millennium Management, Minhua Zhang’s Weld Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s now review hedge fund activity in other stocks similar to SemGroup Corp (NYSE:SEMG). These stocks are Editas Medicine, Inc. (NASDAQ:EDIT), Casa Systems, Inc. (NASDAQ:CASA), Standard Motor Products, Inc. (NYSE:SMP), and PPDAI Group Inc. (NYSE:PPDF). This group of stocks’ market caps are closest to SEMG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EDIT | 18 | 105423 | 1 |
| CASA | 12 | 28507 | 2 |
| SMP | 11 | 128746 | 1 |
| PPDF | 6 | 4982 | 1 |
| Average | 11.75 | 66915 | 1.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $67 million. That figure was $35 million in SEMG’s case. Editas Medicine, Inc. (NASDAQ:EDIT) is the most popular stock in this table. On the other hand PPDAI Group Inc. (NYSE:PPDF) is the least popular one with only 6 bullish hedge fund positions. SemGroup Corp (NYSE:SEMG) is not the most popular stock in this group but hedge fund interest is still above average. 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 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Unfortunately SEMG wasn’t nearly as popular as these 15 stock and hedge funds that were betting on SEMG were disappointed as the stock returned 8.6% and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 15 most popular stocks) among hedge funds as 13 of these stocks already outperformed the market this year.
Disclosure: None. This article was originally published at Insider Monkey.
