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 September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is PACCAR Inc (NASDAQ:PCAR), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
PACCAR Inc (NASDAQ:PCAR) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 26 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Franklin Resources, Inc. (NYSE:BEN), Mylan Inc. (NASDAQ:MYL), and The Hershey Company (NYSE:HSY) to gather more data points.
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We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
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What have hedge funds been doing with PACCAR Inc (NASDAQ:PCAR)?
At Q3’s end, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the previous quarter. Below, you can check out the change in hedge fund sentiment towards PCAR over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Mark Wolfson and Jamie Alexander’s Jasper Ridge Partners has the biggest position in PACCAR Inc (NASDAQ:PCAR), worth close to $50.8 million, accounting for 3.2% of its total 13F portfolio. On Jasper Ridge Partners’s heels is Jim Simons’ Renaissance Technologies, which holds a $42.9 million position. Remaining hedge funds and institutional investors that are bullish encompass Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. Interestingly, Philippe Jabre’s Jabre Capital Partners got rid of the largest position of all the hedgies followed by Insider Monkey, comprising about $6.5 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $6.1 million worth of call options.
Let’s check out hedge fund activity in other stocks similar to PACCAR Inc (NASDAQ:PCAR). We will take a look at Franklin Resources, Inc. (NYSE:BEN), Mylan Inc. (NASDAQ:MYL), The Hershey Company (NYSE:HSY), and Southern Copper Corp (NYSE:SCCO). This group of stocks’ market valuations are closest to PCAR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BEN | 32 | 1957076 | 0 |
| MYL | 39 | 1819090 | -5 |
| HSY | 34 | 714396 | 6 |
| SCCO | 12 | 75412 | -1 |
As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.14 billion. That figure was $371 million in PCAR’s case. Mylan Inc. (NASDAQ:MYL) is the most popular stock in this table. On the other hand Southern Copper Corp (NYSE:SCCO) is the least popular one with only 12 bullish hedge fund positions. PACCAR Inc (NASDAQ:PCAR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MYL might be a better candidate to consider taking a long position in.
Disclosure: None
