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 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. What do these smart investors think about NVIDIA Corporation (NASDAQ:NVDA)?
NVIDIA Corporation (NASDAQ:NVDA) was in 86 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 95. NVDA has seen an increase in support from the world’s most elite money managers of late. There were 80 hedge funds in our database with NVDA positions at the end of the first quarter. Our calculations also showed that NVDA isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Alex Sacerdote of Whale Rock Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. 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 homepage. Keeping this in mind we’re going to take a peek at the recent hedge fund action regarding NVIDIA Corporation (NASDAQ:NVDA).
Do Hedge Funds Think NVDA Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 86 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the previous quarter. By comparison, 92 hedge funds held shares or bullish call options in NVDA a year ago. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Griffin’s Citadel Investment Group has the most valuable call position in NVIDIA Corporation (NASDAQ:NVDA), worth close to $4.2389 billion, comprising 0.9% of its total 13F portfolio. Coming in second is GQG Partners, managed by Rajiv Jain, which holds a $2.972 billion position; the fund has 8.7% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish encompass Ken Fisher’s Fisher Asset Management, Renaissance Technologies and D. E. Shaw’s D E Shaw. In terms of the portfolio weights assigned to each position Ariose Capital allocated the biggest weight to NVIDIA Corporation (NASDAQ:NVDA), around 19.68% of its 13F portfolio. Panview Capital is also relatively very bullish on the stock, setting aside 10.38 percent of its 13F equity portfolio to NVDA.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Whale Rock Capital Management, managed by Alex Sacerdote, assembled the biggest position in NVIDIA Corporation (NASDAQ:NVDA). Whale Rock Capital Management had $239.2 million invested in the company at the end of the quarter. Philippe Laffont’s Coatue Management also initiated a $163.8 million position during the quarter. The following funds were also among the new NVDA investors: Ryan Caldwell’s Chiron Investment Management, John Hurley’s Cavalry Asset Management, and Ray Dalio’s Bridgewater Associates.
Let’s now review hedge fund activity in other stocks similar to NVIDIA Corporation (NASDAQ:NVDA). These stocks are JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), Walmart Inc. (NYSE:WMT), UnitedHealth Group Inc. (NYSE:UNH), Mastercard Incorporated (NYSE:MA), Bank of America Corporation (NYSE:BAC), and Paypal Holdings Inc (NASDAQ:PYPL). This group of stocks’ market caps are closest to NVDA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| JPM | 108 | 4928203 | -3 |
| JNJ | 88 | 7057087 | 7 |
| WMT | 71 | 8048192 | 13 |
| UNH | 105 | 13124871 | 16 |
| MA | 156 | 17098818 | 5 |
| BAC | 87 | 46536945 | -10 |
| PYPL | 143 | 16352523 | 0 |
| Average | 108.3 | 16163806 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 108.3 hedge funds with bullish positions and the average amount invested in these stocks was $16164 million. That figure was $9098 million in NVDA’s case. Mastercard Incorporated (NYSE:MA) is the most popular stock in this table. On the other hand Walmart Inc. (NYSE:WMT) is the least popular one with only 71 bullish hedge fund positions. NVIDIA Corporation (NASDAQ:NVDA) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for NVDA is 46. 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 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.1% in 2021 through September 20th and still beat the market by 6.9 percentage points. A small number of hedge funds were also right about betting on NVDA as the stock returned 5.6% since the end of the second quarter (through 9/20) and outperformed the market by an even larger margin.
Follow Nvidia Corp (NASDAQ:NVDA)
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Disclosure: None. This article was originally published at Insider Monkey.
