Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th. In this article we are going to take a look at smart money sentiment towards Qorvo Inc (NASDAQ:QRVO).
Qorvo Inc (NASDAQ:QRVO) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. QRVO was in 28 hedge funds’ portfolios at the end of the third quarter of 2018. There were 24 hedge funds in our database with QRVO holdings at the end of the previous quarter. Our calculations also showed that QRVO isn’t among the 30 most popular stocks among hedge funds.
According to most market participants, hedge funds are viewed as slow, outdated investment vehicles of yesteryear. While there are more than 8,000 funds trading today, We choose to focus on the bigwigs of this group, around 700 funds. These investment experts handle most of the hedge fund industry’s total asset base, and by following their finest investments, Insider Monkey has unsheathed a number of investment strategies that have historically defeated the S&P 500 index. Insider Monkey’s flagship hedge fund strategy outstripped the S&P 500 index by 6 percentage points per year since its inception in May 2014 through early November 2018. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 24% since February 2017 (through December 3rd) even though the market was up nearly 23% during the same period. We just shared a list of 11 short targets in our latest quarterly update.
We’re going to go over the key hedge fund action encompassing Qorvo Inc (NASDAQ:QRVO).
What does the smart money think about Qorvo Inc (NASDAQ:QRVO)?
Heading into the fourth quarter of 2018, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards QRVO over the last 13 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Baupost Group held the most valuable stake in Qorvo Inc (NASDAQ:QRVO), which was worth $845.8 million at the end of the third quarter. On the second spot was Iridian Asset Management which amassed $262 million worth of shares. Moreover, Soroban Capital Partners, Fisher Asset Management, and AQR Capital Management were also bullish on Qorvo Inc (NASDAQ:QRVO), allocating a large percentage of their portfolios to this stock.
Now, key hedge funds were breaking ground themselves. Soroban Capital Partners, managed by Eric W. Mandelblatt and Gaurav Kapadia, assembled the biggest position in Qorvo Inc (NASDAQ:QRVO). Soroban Capital Partners had $175.9 million invested in the company at the end of the quarter. John Hurley’s Cavalry Asset Management also made a $43.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Lee Ainslie’s Maverick Capital, Paul Tudor Jones’s Tudor Investment Corp, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s also examine hedge fund activity in other stocks similar to Qorvo Inc (NASDAQ:QRVO). These stocks are UGI Corp (NYSE:UGI), iShares Nasdaq Biotechnology ETF (NASDAQ:IBB), Cognex Corporation (NASDAQ:CGNX), and Newell Brands Inc. (NYSE:NWL). All of these stocks’ market caps resemble QRVO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UGI | 19 | 495269 | 2 |
| IBB | 17 | 190644 | 0 |
| CGNX | 13 | 272086 | -3 |
| NWL | 36 | 1698839 | 3 |
| Average | 21.25 | 664210 | 0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $664 million. That figure was $1.57 billion in QRVO’s case. Newell Brands Inc. (NYSE:NWL) is the most popular stock in this table. On the other hand Cognex Corporation (NASDAQ:CGNX) is the least popular one with only 13 bullish hedge fund positions. Qorvo Inc (NASDAQ:QRVO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NWL might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
