Is Autodesk, Inc. (NASDAQ:ADSK) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Is Autodesk, Inc. (NASDAQ:ADSK) a first-rate investment today? Prominent investors are taking an optimistic view. The number of long hedge fund bets went up by 3 recently. ADSK was in 38 hedge funds’ portfolios at the end of the third quarter of 2016. There were 35 hedge funds in our database with ADSK positions at the end of the previous quarter. At the end of this article we will also compare ADSK to other stocks including Host Hotels and Resorts Inc (NYSE:HST), Skyworks Solutions Inc (NASDAQ:SWKS), and Vodafone Group Plc (ADR) (NASDAQ:VOD) to get a better sense of its popularity.
Follow Autodesk Inc. (NASDAQ:ADSK)
Follow Autodesk Inc. (NASDAQ:ADSK)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to take a glance at the recent action surrounding Autodesk, Inc. (NASDAQ:ADSK).
How have hedgies been trading Autodesk, Inc. (NASDAQ:ADSK)?
At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey were long this stock, up 9% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ricky Sandler’s Eminence Capital has the number one position in Autodesk, Inc. (NASDAQ:ADSK), worth close to $959 million and corresponding to 16% of its total 13F portfolio. The second largest stake is held by Sachem Head Capital, led by Scott Ferguson, holding a $932.3 million position; 46% of its 13F portfolio is allocated to the stock. Some other peers that are bullish encompass Eric W. Mandelblatt’s Soroban Capital Partners, John Griffin’s Blue Ridge Capital and David Cohen and Harold Levy’s Iridian Asset Management.
As industrywide interest jumped, key money managers have jumped into Autodesk, Inc. (NASDAQ:ADSK) headfirst. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable call position in Autodesk, Inc. (NASDAQ:ADSK) amassing $21.6 million worth of options by the end of the quarter. The other funds with brand new ADSK positions are David Costen Haley’s HBK Investments, George Hall’s Clinton Group, and Sheetal Duggal’s Thrax Management.
Let’s check out hedge fund activity in other stocks similar to Autodesk, Inc. (NASDAQ:ADSK). These stocks are Host Hotels and Resorts Inc (NYSE:HST), Skyworks Solutions Inc (NASDAQ:SWKS), Vodafone Group Plc (ADR) (NASDAQ:VOD), and Cabot Oil & Gas Corporation (NYSE:COG). This group of stocks’ market valuations are closest to ADSK’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HST | 17 | 228297 | 3 |
| SWKS | 32 | 457924 | -1 |
| VOD | 18 | 445786 | -4 |
| COG | 35 | 1797666 | -1 |
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $732 million. That figure was $4.56 billion in the case of Autodesk. Cabot Oil & Gas Corporation (NYSE:COG) is the most popular stock in this table. On the other hand Host Hotels and Resorts Inc (NYSE:HST) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Autodesk, Inc. (NASDAQ:ADSK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
