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 have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Trimble Inc. (NASDAQ:TRMB) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Trimble Inc. (NASDAQ:TRMB) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. Trimble Inc. (NASDAQ:TRMB) was in 23 hedge funds’ portfolios at the end of March. The all time high for this statistic is 35. Our calculations also showed that TRMB isn’t among the 30 most popular stocks among hedge funds (click for Q1 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 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
David Blood of Generation Investment Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery 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. Now let’s take a glance at the recent hedge fund action surrounding Trimble Inc. (NASDAQ:TRMB).
Do Hedge Funds Think TRMB Is A Good Stock To Buy Now?
At first quarter’s end, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TRMB over the last 23 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ian Simm’s Impax Asset Management has the number one position in Trimble Inc. (NASDAQ:TRMB), worth close to $641.1 million, amounting to 3.3% of its total 13F portfolio. The second largest stake is held by Generation Investment Management, managed by David Blood and Al Gore, which holds a $432.8 million position; 1.8% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Catherine D. Wood’s ARK Investment Management, Robert Joseph Caruso’s Select Equity Group and Phill Gross and Robert Atchinson’s Adage Capital Management. In terms of the portfolio weights assigned to each position Impax Asset Management allocated the biggest weight to Trimble Inc. (NASDAQ:TRMB), around 3.28% of its 13F portfolio. Generation Investment Management is also relatively very bullish on the stock, dishing out 1.81 percent of its 13F equity portfolio to TRMB.
Consequently, key hedge funds were leading the bulls’ herd. Select Equity Group, managed by Robert Joseph Caruso, created the largest position in Trimble Inc. (NASDAQ:TRMB). Select Equity Group had $81.2 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $34.3 million investment in the stock during the quarter. The other funds with brand new TRMB positions are Paul Marshall and Ian Wace’s Marshall Wace LLP, Mario Gabelli’s GAMCO Investors, and David Costen Haley’s HBK Investments.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Trimble Inc. (NASDAQ:TRMB) but similarly valued. These stocks are M&T Bank Corporation (NYSE:MTB), Teleflex Incorporated (NYSE:TFX), KB Financial Group, Inc. (NYSE:KB), IAC/InterActiveCorp (NASDAQ:IAC), KeyCorp (NYSE:KEY), Hologic, Inc. (NASDAQ:HOLX), and ZoomInfo Technologies Inc. (NASDAQ:ZI). This group of stocks’ market values are closest to TRMB’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MTB | 36 | 671109 | 3 |
| TFX | 33 | 571638 | 3 |
| KB | 9 | 43761 | 4 |
| IAC | 63 | 2102112 | -4 |
| KEY | 41 | 565404 | 12 |
| HOLX | 32 | 517383 | -11 |
| ZI | 24 | 318610 | -7 |
| Average | 34 | 684288 | 0 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $684 million. That figure was $1516 million in TRMB’s case. IAC/InterActiveCorp (NASDAQ:IAC) 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 9 bullish hedge fund positions. Trimble Inc. (NASDAQ:TRMB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TRMB is 39.7. 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 negative signal and 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 23.8% in 2021 through July 16th and surpassed the market again by 7.7 percentage points. Unfortunately TRMB wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); TRMB investors were disappointed as the stock returned 1.8% since the end of March (through 7/16) 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 in 2021.
Follow Trimble Inc. (NASDAQ:TRMB)
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Disclosure: None. This article was originally published at Insider Monkey.
