Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Chubb Limited (NYSE:CB).
Is CB a good stock to buy now? Chubb Limited (NYSE:CB) has seen an increase in support from the world’s most elite money managers in recent months. Chubb Limited (NYSE:CB) was in 45 hedge funds’ portfolios at the end of September. The all time high for this statistic is 50. There were 40 hedge funds in our database with CB positions at the end of the second quarter. Our calculations also showed that CB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
At the moment there are numerous tools stock traders can use to analyze their holdings. Two of the most underrated tools are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can outperform the market by a solid amount (see the details here).
Andreas Halvorsen of Viking Global
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 15 best blue chip stocks to buy to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Keeping this in mind let’s take a look at the latest hedge fund action encompassing Chubb Limited (NYSE:CB).
Do Hedge Funds Think CB Is A Good Stock To Buy Now?
At the end of September, a total of 45 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from the second quarter of 2020. On the other hand, there were a total of 27 hedge funds with a bullish position in CB a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Chubb Limited (NYSE:CB) was held by Viking Global, which reported holding $396.7 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $193.9 million position. Other investors bullish on the company included Polar Capital, Point72 Asset Management, and Millennium Management. In terms of the portfolio weights assigned to each position Spindletop Capital allocated the biggest weight to Chubb Limited (NYSE:CB), around 26.65% of its 13F portfolio. Capital Returns Management is also relatively very bullish on the stock, setting aside 9 percent of its 13F equity portfolio to CB.
Consequently, some big names were breaking ground themselves. Prana Capital Management, managed by Peter Seuss, created the most valuable position in Chubb Limited (NYSE:CB). Prana Capital Management had $40.5 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $37.3 million position during the quarter. The following funds were also among the new CB investors: Greg Eisner’s Engineers Gate Manager, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Jinghua Yan’s TwinBeech Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Chubb Limited (NYSE:CB) but similarly valued. These stocks are Dollar General Corp. (NYSE:DG), Micron Technology, Inc. (NASDAQ:MU), Truist Financial Corporation (NYSE:TFC), Workday Inc (NASDAQ:WDAY), Newmont Corporation (NYSE:NEM), Autodesk, Inc. (NASDAQ:ADSK), and Dell Technologies Inc. (NYSE:DELL). This group of stocks’ market valuations are closest to CB’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DG | 56 | 1824156 | -11 |
| MU | 79 | 4570742 | -5 |
| TFC | 29 | 180947 | -4 |
| WDAY | 74 | 4396870 | 1 |
| NEM | 55 | 1951831 | 0 |
| ADSK | 65 | 3169801 | -2 |
| DELL | 43 | 3763509 | -7 |
| Average | 57.3 | 2836837 | -4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 57.3 hedge funds with bullish positions and the average amount invested in these stocks was $2837 million. That figure was $1396 million in CB’s case. Micron Technology, Inc. (NASDAQ:MU) is the most popular stock in this table. On the other hand Truist Financial Corporation (NYSE:TFC) is the least popular one with only 29 bullish hedge fund positions. Chubb Limited (NYSE:CB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CB is 53. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. A small number of hedge funds were also right about betting on CB as the stock returned 31.2% since the end of the third quarter (through 12/8) and outperformed the market by an even larger margin.
Follow Chubb Corp (Old Insider Filings) (NYSE:CB)
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Disclosure: None. This article was originally published at Insider Monkey.
