The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Trimble Inc. (NASDAQ:TRMB).
Trimble Inc. (NASDAQ:TRMB) investors should be aware of an increase in hedge fund sentiment recently. Trimble Inc. (NASDAQ:TRMB) was in 34 hedge funds’ portfolios at the end of September. The all time high for this statistic is 35. There were 27 hedge funds in our database with TRMB holdings at the end of June. Our calculations also showed that TRMB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Ray Dalio of Bridgewater Associates
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. Now we’re going to go over the new hedge fund action surrounding Trimble Inc. (NASDAQ:TRMB).
Do Hedge Funds Think TRMB Is A Good Stock To Buy Now?
At third quarter’s end, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of 26% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in TRMB over the last 25 quarters. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
Among these funds, Impax Asset Management held the most valuable stake in Trimble Inc. (NASDAQ:TRMB), which was worth $653.4 million at the end of the third quarter. On the second spot was ARK Investment Management which amassed $364.6 million worth of shares. Generation Investment Management, Select Equity Group, 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 Impax Asset Management allocated the biggest weight to Trimble Inc. (NASDAQ:TRMB), around 2.68% of its 13F portfolio. Otter Creek Management is also relatively very bullish on the stock, designating 1.43 percent of its 13F equity portfolio to TRMB.
As aggregate interest increased, key money managers have been driving this bullishness. Renaissance Technologies, created the most outsized position in Trimble Inc. (NASDAQ:TRMB). Renaissance Technologies had $17.3 million invested in the company at the end of the quarter. Javier Velazquez’s Albar Capital also made a $3.9 million investment in the stock during the quarter. The following funds were also among the new TRMB investors: Paul Tudor Jones’s Tudor Investment Corp, Jinghua Yan’s TwinBeech Capital, and Greg Poole’s Echo Street Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Trimble Inc. (NASDAQ:TRMB) but similarly valued. We will take a look at KeyCorp (NYSE:KEY), Fresenius Medical Care AG & Co. (NYSE:FMS), Baker Hughes Company (NYSE:BKR), W.W. Grainger, Inc. (NYSE:GWW), Live Nation Entertainment, Inc. (NYSE:LYV), Ingersoll Rand Inc. (NYSE:IR), and Steris Plc (NYSE:STE). This group of stocks’ market valuations are closest to TRMB’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KEY | 36 | 399496 | -4 |
| FMS | 4 | 231694 | -1 |
| BKR | 37 | 1013933 | -3 |
| GWW | 28 | 306060 | -1 |
| LYV | 47 | 1308167 | 7 |
| IR | 33 | 732834 | 2 |
| STE | 34 | 1733011 | -1 |
| Average | 31.3 | 817885 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.3 hedge funds with bullish positions and the average amount invested in these stocks was $818 million. That figure was $1815 million in TRMB’s case. Live Nation Entertainment, Inc. (NYSE:LYV) is the most popular stock in this table. On the other hand Fresenius Medical Care AG & Co. (NYSE:FMS) is the least popular one with only 4 bullish hedge fund positions. Trimble Inc. (NASDAQ:TRMB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TRMB is 74. 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 TRMB wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TRMB were disappointed as the stock returned 4.4% 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 Trimble Inc. (NASDAQ:TRMB)
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Disclosure: None. This article was originally published at Insider Monkey.
