TechnipFMC plc (FTI): Hedge Fund Sentiment Unchanged

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. We at Insider Monkey have plowed through 873 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article we look at what those investors think of TechnipFMC plc (NYSE:FTI).

TechnipFMC plc (NYSE:FTI) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 25 hedge funds’ portfolios at the end of the second quarter of 2021. Our calculations also showed that FTI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), PS Business Parks Inc (NYSE:PSB), and Community Bank System, Inc. (NYSE:CBU) to gather more data points.

To most traders, hedge funds are seen as underperforming, outdated financial tools of years past. While there are greater than 8000 funds with their doors open at the moment, Our experts choose to focus on the masters of this group, around 850 funds. These investment experts orchestrate most of the hedge fund industry’s total capital, and by following their highest performing equity investments, Insider Monkey has found a few investment strategies that have historically defeated the broader indices. Insider Monkey’s flagship short hedge fund strategy outpaced the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Richard S. Pzena of Pzena Investment 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 let’s check out the recent hedge fund action regarding TechnipFMC plc (NYSE:FTI).

Do Hedge Funds Think FTI Is A Good Stock To Buy Now?

At Q2’s end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in FTI over the last 24 quarters. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Pzena Investment Management, managed by Richard S. Pzena, holds the biggest position in TechnipFMC plc (NYSE:FTI). Pzena Investment Management has a $203.8 million position in the stock, comprising 0.8% of its 13F portfolio. Sitting at the No. 2 spot is John Overdeck and David Siegel of Two Sigma Advisors, with a $71 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions include Renaissance Technologies, Israel Englander’s Millennium Management and Benjamin A. Smith’s Laurion Capital Management. In terms of the portfolio weights assigned to each position SIR Capital Management allocated the biggest weight to TechnipFMC plc (NYSE:FTI), around 2.09% of its 13F portfolio. Pzena Investment Management is also relatively very bullish on the stock, setting aside 0.79 percent of its 13F equity portfolio to FTI.

Since TechnipFMC plc (NYSE:FTI) has experienced falling interest from the entirety of the hedge funds we track, we can see that there were a few money managers that slashed their positions entirely by the end of the second quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management said goodbye to the biggest stake of the 750 funds tracked by Insider Monkey, comprising close to $12.3 million in stock, and Jonathan Barrett and Paul Segal’s Luminus Management was right behind this move, as the fund dumped about $1.6 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to TechnipFMC plc (NYSE:FTI). These stocks are Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), PS Business Parks Inc (NYSE:PSB), Community Bank System, Inc. (NYSE:CBU), Yamana Gold Inc. (NYSE:AUY), Rackspace Technology, Inc. (NASDAQ:RXT), Umpqua Holdings Corp (NASDAQ:UMPQ), and Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB). All of these stocks’ market caps match FTI’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $442 million in FTI’s case. Umpqua Holdings Corp (NASDAQ:UMPQ) is the most popular stock in this table. On the other hand Community Bank System, Inc. (NYSE:CBU) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks TechnipFMC plc (NYSE:FTI) is more popular among hedge funds. Our overall hedge fund sentiment score for FTI is 72.9. 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% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Unfortunately FTI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FTI were disappointed as the stock returned -14.8% since the end of the second quarter (through 10/22) 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 most of these stocks already outperformed the market since 2019.

Suggested Articles:

• 10 Best Selling Products Online in 2020
• 15 Fastest Growing Beverage Brands in 2020
• 10 Best Restaurant Stocks To Buy

Disclosure: None. This article was originally published at Insider Monkey.