The Insider Monkey team has completed processing the quarterly 13F filings for the September 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 Qorvo Inc (NASDAQ:QRVO).
Qorvo Inc (NASDAQ:QRVO) investors should be aware of an increase in hedge fund interest of late. Qorvo Inc (NASDAQ:QRVO) was in 44 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 51. Our calculations also showed that QRVO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Harold Levy of Iridian Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. With all of this in mind we’re going to analyze the recent hedge fund action surrounding Qorvo Inc (NASDAQ:QRVO).
Do Hedge Funds Think QRVO Is A Good Stock To Buy Now?
At third quarter’s end, a total of 44 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards QRVO over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Qorvo Inc (NASDAQ:QRVO) was held by Baupost Group, which reported holding $850.1 million worth of stock at the end of September. It was followed by Select Equity Group with a $203.5 million position. Other investors bullish on the company included Fisher Asset Management, Iridian Asset Management, and AQR Capital Management. In terms of the portfolio weights assigned to each position Panview Capital allocated the biggest weight to Qorvo Inc (NASDAQ:QRVO), around 7.94% of its 13F portfolio. Baupost Group is also relatively very bullish on the stock, earmarking 7.81 percent of its 13F equity portfolio to QRVO.
Now, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, assembled the most outsized position in Qorvo Inc (NASDAQ:QRVO). Balyasny Asset Management had $28.8 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $4.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Richard Mashaal’s Rima Senvest Management, and Greg Eisner’s Engineers Gate Manager.
Let’s now take a look at hedge fund activity in other stocks similar to Qorvo Inc (NASDAQ:QRVO). We will take a look at Cincinnati Financial Corporation (NASDAQ:CINF), Ally Financial Inc (NYSE:ALLY), Duke Realty Corporation (NYSE:DRE), KB Financial Group, Inc. (NYSE:KB), Healthpeak Properties, Inc. (NYSE:PEAK), Teradyne, Inc. (NYSE:TER), and Lyft, Inc. (NASDAQ:LYFT). This group of stocks’ market caps match QRVO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CINF | 20 | 661958 | -2 |
| ALLY | 57 | 2517368 | 3 |
| DRE | 13 | 67287 | -2 |
| KB | 8 | 21128 | 0 |
| PEAK | 20 | 202911 | -2 |
| TER | 42 | 1369839 | -2 |
| LYFT | 33 | 900001 | -10 |
| Average | 27.6 | 820070 | -2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.6 hedge funds with bullish positions and the average amount invested in these stocks was $820 million. That figure was $1951 million in QRVO’s case. Ally Financial Inc (NYSE:ALLY) is the most popular stock in this table. On the other hand KB Financial Group, Inc. (NYSE:KB) is the least popular one with only 8 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. Our overall hedge fund sentiment score for QRVO is 71.6. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately QRVO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on QRVO were disappointed as the stock returned -12.5% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Qorvo Inc. (NASDAQ:QRVO)
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Disclosure: None. This article was originally published at Insider Monkey.
