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 nearly 900 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 Atlassian Corporation Plc (NASDAQ:TEAM), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is TEAM a good stock to buy? Atlassian Corporation Plc (NASDAQ:TEAM) was in 60 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 69. TEAM investors should pay attention to a decrease in hedge fund sentiment lately. There were 64 hedge funds in our database with TEAM positions at the end of the second quarter. Our calculations also showed that TEAM isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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 we’re going to review the recent hedge fund action encompassing Atlassian Corporation Plc (NASDAQ:TEAM).
Israel Englander of Millennium Management
Do Hedge Funds Think TEAM Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 60 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from one quarter earlier. On the other hand, there were a total of 48 hedge funds with a bullish position in TEAM a year ago. 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, Renaissance Technologies held the most valuable stake in Atlassian Corporation Plc (NASDAQ:TEAM), which was worth $1244.2 million at the end of the third quarter. On the second spot was Tiger Global Management LLC which amassed $965 million worth of shares. Alkeon Capital Management, Alkeon Capital Management, and Arrowstreet Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Strategy Capital allocated the biggest weight to Atlassian Corporation Plc (NASDAQ:TEAM), around 19.56% of its 13F portfolio. One01 Capital is also relatively very bullish on the stock, earmarking 11.8 percent of its 13F equity portfolio to TEAM.
Seeing as Atlassian Corporation Plc (NASDAQ:TEAM) has witnessed falling interest from the smart money, logic holds that there is a sect of hedge funds who were dropping their full holdings last quarter. Interestingly, Andreas Halvorsen’s Viking Global said goodbye to the largest investment of the 750 funds tracked by Insider Monkey, comprising about $134.6 million in stock. Zach Schreiber’s fund, Point State Capital, also dumped its stock, about $87.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 4 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Atlassian Corporation Plc (NASDAQ:TEAM) but similarly valued. We will take a look at Booking Holdings Inc. (NASDAQ:BKNG), GlaxoSmithKline plc (NYSE:GSK), Lockheed Martin Corporation (NYSE:LMT), Infosys Limited (NYSE:INFY), Prologis Inc (NYSE:PLD), Zoetis Inc (NYSE:ZTS), and BP plc (NYSE:BP). This group of stocks’ market caps match TEAM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BKNG | 96 | 8429836 | -4 |
| GSK | 31 | 1658987 | 3 |
| LMT | 51 | 1284495 | -7 |
| INFY | 29 | 2473668 | 7 |
| PLD | 32 | 483464 | -8 |
| ZTS | 58 | 2713394 | 0 |
| BP | 29 | 1053236 | -1 |
| Average | 46.6 | 2585297 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 46.6 hedge funds with bullish positions and the average amount invested in these stocks was $2585 million. That figure was $6079 million in TEAM’s case. Booking Holdings Inc. (NASDAQ:BKNG) is the most popular stock in this table. On the other hand Infosys Limited (NYSE:INFY) is the least popular one with only 29 bullish hedge fund positions. Atlassian Corporation Plc (NASDAQ:TEAM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TEAM is 50.2. 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. 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 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately TEAM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TEAM were disappointed as the stock returned -3.9% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Atlassian Corp (NASDAQ:TEAM)
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Disclosure: None. This article was originally published at Insider Monkey.
