The Insider Monkey team has completed processing the quarterly 13F filings for the December quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Genpact Limited (NYSE:G).
Is G stock a buy? Hedge funds were turning bullish. The number of long hedge fund bets advanced by 3 lately. Genpact Limited (NYSE:G) was in 31 hedge funds’ portfolios at the end of December. The all time high for this statistic is 38. Our calculations also showed that G isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). There were 28 hedge funds in our database with G holdings at the end of September.
David Siegel of Two Sigma Advisors
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we heard that billionaire Peter Thiel is backing this biotech stock. So, we are taking a closer look at this space. We go through lists like the 10 best biotech stocks under $10 to identify the next stock with 10x upside potential. 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. Now let’s take a gander at the recent hedge fund action surrounding Genpact Limited (NYSE:G).
Do Hedge Funds Think G Is A Good Stock To Buy Now?
At Q4’s end, a total of 31 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from one quarter earlier. On the other hand, there were a total of 37 hedge funds with a bullish position in G a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Genpact Limited (NYSE:G) was held by Arrowstreet Capital, which reported holding $81.3 million worth of stock at the end of December. It was followed by D E Shaw with a $40.9 million position. Other investors bullish on the company included Millennium Management, Two Sigma Advisors, and Alyeska Investment Group. In terms of the portfolio weights assigned to each position Dalton Investments allocated the biggest weight to Genpact Limited (NYSE:G), around 9.47% of its 13F portfolio. Old Well Partners is also relatively very bullish on the stock, earmarking 2.79 percent of its 13F equity portfolio to G.
With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, initiated the biggest position in Genpact Limited (NYSE:G). Alyeska Investment Group had $27.8 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $5.5 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Minhua Zhang’s Weld Capital Management, and Qing Li’s Sciencast Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Genpact Limited (NYSE:G) but similarly valued. We will take a look at Cemex SAB de CV (NYSE:CX), Williams-Sonoma, Inc. (NYSE:WSM), Eaton Vance Corp (NYSE:EV), Axon Enterprise, Inc. (NASDAQ:AAXN), Comerica Incorporated (NYSE:CMA), Lithia Motors Inc (NYSE:LAD), and Steel Dynamics, Inc. (NASDAQ:STLD). This group of stocks’ market caps match G’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CX | 22 | 455726 | 6 |
| WSM | 29 | 496240 | -2 |
| EV | 26 | 732680 | 3 |
| AAXN | 32 | 495779 | 0 |
| CMA | 38 | 582061 | 8 |
| LAD | 39 | 1577323 | -10 |
| STLD | 27 | 413067 | -1 |
| Average | 30.4 | 678982 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.4 hedge funds with bullish positions and the average amount invested in these stocks was $679 million. That figure was $341 million in G’s case. Lithia Motors Inc (NYSE:LAD) is the most popular stock in this table. On the other hand Cemex SAB de CV (NYSE:CX) is the least popular one with only 22 bullish hedge fund positions. Genpact Limited (NYSE:G) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for G is 58.9. 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 12.2% in 2021 through April 12th and still beat the market by 1.5 percentage points. Hedge funds were also right about betting on G, though not to the same extent, as the stock returned 7.9% since Q4 (through April 12th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
