The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 817 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2020. In this article we are going to take a look at smart money sentiment towards Sibanye Stillwater Limited (NYSE:SBSW).
Is SBSW a good stock to buy now? Sibanye Stillwater Limited (NYSE:SBSW) has experienced an increase in support from the world’s most elite money managers recently. Sibanye Stillwater Limited (NYSE:SBSW) was in 22 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistic is 19. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that SBSW 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.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 113% since March 2017 and outperformed the S&P 500 ETFs by more than 66 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Eric Sprott of Sprott Asset Management
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks 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 we’re going to take a glance at the recent hedge fund action encompassing Sibanye Stillwater Limited (NYSE:SBSW).
Do Hedge Funds Think SBSW Is A Good Stock To Buy Now?
At third quarter’s end, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 29% from the second quarter of 2020. On the other hand, there were a total of 15 hedge funds with a bullish position in SBSW a year ago. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the biggest position in Sibanye Stillwater Limited (NYSE:SBSW). Arrowstreet Capital has a $43.8 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which holds a $35 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish consist of Cliff Asness’s AQR Capital Management, Eric Sprott’s Sprott Asset Management and Noam Gottesman’s GLG Partners. In terms of the portfolio weights assigned to each position Maple Rock Capital allocated the biggest weight to Sibanye Stillwater Limited (NYSE:SBSW), around 2.55% of its 13F portfolio. Impala Asset Management is also relatively very bullish on the stock, dishing out 1.47 percent of its 13F equity portfolio to SBSW.
Now, key money managers have jumped into Sibanye Stillwater Limited (NYSE:SBSW) headfirst. Impala Asset Management, managed by Robert Bishop, assembled the most outsized position in Sibanye Stillwater Limited (NYSE:SBSW). Impala Asset Management had $14.6 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $7.7 million investment in the stock during the quarter. The following funds were also among the new SBSW investors: Michael Gelband’s ExodusPoint Capital, Benjamin A. Smith’s Laurion Capital Management, and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Sibanye Stillwater Limited (NYSE:SBSW) but similarly valued. These stocks are Alleghany Corporation (NYSE:Y), Service Corporation International (NYSE:SCI), Owens Corning (NYSE:OC), SEI Investments Company (NASDAQ:SEIC), Genpact Limited (NYSE:G), Hubbell Incorporated (NYSE:HUBB), and Mirati Therapeutics, Inc. (NASDAQ:MRTX). All of these stocks’ market caps are similar to SBSW’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| Y | 29 | 306105 | -2 |
| SCI | 30 | 727982 | 3 |
| OC | 43 | 682518 | 6 |
| SEIC | 36 | 231552 | -1 |
| G | 28 | 213915 | -1 |
| HUBB | 30 | 352117 | 1 |
| MRTX | 38 | 2389684 | 2 |
| Average | 33.4 | 700553 | 1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 33.4 hedge funds with bullish positions and the average amount invested in these stocks was $701 million. That figure was $209 million in SBSW’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand Genpact Limited (NYSE:G) is the least popular one with only 28 bullish hedge fund positions. Compared to these stocks Sibanye Stillwater Limited (NYSE:SBSW) is even less popular than G. Our overall hedge fund sentiment score for SBSW is 40. 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. Hedge funds clearly dropped the ball on SBSW as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. 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 30.7% in 2020 through December 14th and still beat the market by 15.8 percentage points. A small number of hedge funds were also right about betting on SBSW as the stock returned 27.8% since Q3 (through December 14th) and outperformed the market by an even larger margin.
Follow Sibanye Stillwater Limited (NYSE:SBSW)
Follow Sibanye Stillwater Limited (NYSE:SBSW)
Disclosure: None. This article was originally published at Insider Monkey.
