Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the fourth quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of Aptiv PLC (NYSE:APTV) based on that data.
Is APTV stock a buy or sell? Aptiv PLC (NYSE:APTV) has experienced an increase in enthusiasm from smart money in recent months. Aptiv PLC (NYSE:APTV) was in 44 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 49. There were 38 hedge funds in our database with APTV holdings at the end of September. Our calculations also showed that APTV isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).
Dan Loeb of Third Point
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Do Hedge Funds Think APTV Is A Good Stock To Buy Now?
Heading into the first quarter of 2021, a total of 44 of the hedge funds tracked by Insider Monkey were long this stock, a change of 16% from the third quarter of 2020. Below, you can check out the change in hedge fund sentiment towards APTV over the last 22 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
The largest stake in Aptiv PLC (NYSE:APTV) was held by Impax Asset Management, which reported holding $351.6 million worth of stock at the end of December. It was followed by Third Point with a $195.4 million position. Other investors bullish on the company included Generation Investment Management, Citadel Investment Group, and Holocene Advisors. In terms of the portfolio weights assigned to each position Engine No. 1 LLC allocated the biggest weight to Aptiv PLC (NYSE:APTV), around 8.47% of its 13F portfolio. Caxton Associates LP is also relatively very bullish on the stock, dishing out 4.16 percent of its 13F equity portfolio to APTV.
As one would reasonably expect, key money managers were breaking ground themselves. Third Point, managed by Dan Loeb, created the most valuable position in Aptiv PLC (NYSE:APTV). Third Point had $195.4 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital also made a $46.4 million investment in the stock during the quarter. The following funds were also among the new APTV investors: Chris James’s Engine No. 1 LLC, Larry Robbins’s Glenview Capital, and Javier Velazquez’s Albar Capital.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Aptiv PLC (NYSE:APTV) but similarly valued. We will take a look at Parker-Hannifin Corporation (NYSE:PH), Ford Motor Company (NYSE:F), Trane Technologies plc (NYSE:TT), Centene Corporation (NYSE:CNC), Xilinx, Inc. (NASDAQ:XLNX), Lloyds Banking Group PLC (NYSE:LYG), and Barclays PLC (NYSE:BCS). All of these stocks’ market caps resemble APTV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PH | 56 | 1601655 | 5 |
| F | 41 | 1652221 | 3 |
| TT | 34 | 998785 | -3 |
| CNC | 56 | 2646289 | -2 |
| XLNX | 66 | 3837083 | 20 |
| LYG | 5 | 4389 | 0 |
| BCS | 12 | 62951 | 6 |
| Average | 38.6 | 1543339 | 4.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.6 hedge funds with bullish positions and the average amount invested in these stocks was $1543 million. That figure was $1354 million in APTV’s case. Xilinx, Inc. (NASDAQ:XLNX) is the most popular stock in this table. On the other hand Lloyds Banking Group PLC (NYSE:LYG) is the least popular one with only 5 bullish hedge fund positions. Aptiv PLC (NYSE:APTV) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for APTV is 68.9. 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 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 5.3% in 2021 through March 19th and still beat the market by 0.8 percentage points. Hedge funds were also right about betting on APTV as the stock returned 12% since the end of Q4 (through 3/19) 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.
