At Insider Monkey, we pore over the filings of nearly 866 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of March 31st. In this article, we will use that wealth of knowledge to determine whether or not Yandex NV (NASDAQ:YNDX) makes for a good investment right now.
Is Yandex NV (NASDAQ:YNDX) a buy right now? Money managers were getting less bullish. The number of long hedge fund bets shrunk by 5 lately. Yandex NV (NASDAQ:YNDX) was in 29 hedge funds’ portfolios at the end of March. The all time high for this statistic is 48. Our calculations also showed that YNDX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
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 check out the latest hedge fund action encompassing Yandex NV (NASDAQ:YNDX).
Do Hedge Funds Think YNDX Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in YNDX over the last 23 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
More specifically, Fisher Asset Management was the largest shareholder of Yandex NV (NASDAQ:YNDX), with a stake worth $335.4 million reported as of the end of March. Trailing Fisher Asset Management was Egerton Capital Limited, which amassed a stake valued at $325.4 million. Orbis Investment Management, Cadian Capital, and Arrowstreet Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position 0 allocated the biggest weight to Yandex NV (NASDAQ:YNDX), around 10.75% of its 13F portfolio. 0 is also relatively very bullish on the stock, dishing out 4.58 percent of its 13F equity portfolio to YNDX.
Because Yandex NV (NASDAQ:YNDX) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of funds who were dropping their full holdings last quarter. Intriguingly, Rajiv Jain’s GQG Partners dropped the biggest investment of the “upper crust” of funds tracked by Insider Monkey, comprising close to $279.7 million in stock, and Mark Moore’s ThornTree Capital Partners was right behind this move, as the fund cut about $25.6 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 5 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Yandex NV (NASDAQ:YNDX) but similarly valued. These stocks are Li Auto Inc. (NASDAQ:LI), United Microelectronics Corp (NYSE:UMC), ONEOK, Inc. (NYSE:OKE), Baker Hughes Company (NYSE:BKR), Verisign, Inc. (NASDAQ:VRSN), Zillow Group Inc (NASDAQ:Z), and Alexandria Real Estate Equities Inc (NYSE:ARE). This group of stocks’ market values are closest to YNDX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LI | 18 | 493824 | -13 |
| UMC | 11 | 173050 | -1 |
| OKE | 20 | 67349 | -2 |
| BKR | 42 | 965463 | 7 |
| VRSN | 42 | 5639028 | -5 |
| Z | 82 | 5732513 | -1 |
| ARE | 27 | 434248 | 13 |
| Average | 34.6 | 1929354 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 34.6 hedge funds with bullish positions and the average amount invested in these stocks was $1929 million. That figure was $1260 million in YNDX’s case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand United Microelectronics Corp (NYSE:UMC) is the least popular one with only 11 bullish hedge fund positions. Yandex NV (NASDAQ:YNDX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for YNDX is 30.8. 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 22.8% in 2021 through July 2nd and beat the market by 6 percentage points. A small number of hedge funds were also right about betting on YNDX, though not to the same extent, as the stock returned 11.3% since the end of Q1 (through July 2nd) and outperformed the market.
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Disclosure: None. This article was originally published at Insider Monkey.
