Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of S&P Global Inc. (NYSE:SPGI) based on that data and determine whether they were really smart about the stock.
S&P Global Inc. (NYSE:SPGI) has experienced an increase in hedge fund sentiment in recent months. S&P Global Inc. (NYSE:SPGI) was in 78 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 76. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that SPGI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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 let’s check out the key hedge fund action regarding S&P Global Inc. (NYSE:SPGI).
Do Hedge Funds Think SPGI Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 78 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SPGI over the last 25 quarters. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Among these funds, TCI Fund Management held the most valuable stake in S&P Global Inc. (NYSE:SPGI), which was worth $2045.2 million at the end of the third quarter. On the second spot was Cantillon Capital Management which amassed $988.9 million worth of shares. Valley Forge Capital, Citadel Investment Group, and Third Point 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 Rings Capital Management allocated the biggest weight to S&P Global Inc. (NYSE:SPGI), around 45.2% of its 13F portfolio. Valley Forge Capital is also relatively very bullish on the stock, setting aside 21.55 percent of its 13F equity portfolio to SPGI.
Consequently, some big names have been driving this bullishness. Junto Capital Management, managed by James Parsons, created the most outsized position in S&P Global Inc. (NYSE:SPGI). Junto Capital Management had $113.1 million invested in the company at the end of the quarter. Mikal Patel’s Oribel Capital Management also initiated a $72.8 million position during the quarter. The other funds with new positions in the stock are Phill Gross and Robert Atchinson’s Adage Capital Management, Sahm Adrangi’s Kerrisdale Capital, and Mikal Patel’s Oribel Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as S&P Global Inc. (NYSE:SPGI) but similarly valued. We will take a look at 3M Company (NYSE:MMM), Airbnb, Inc. (NASDAQ:ABNB), Stryker Corporation (NYSE:SYK), Atlassian Corporation Plc (NASDAQ:TEAM), Booking Holdings Inc. (NASDAQ:BKNG), GlaxoSmithKline plc (NYSE:GSK), and Lockheed Martin Corporation (NYSE:LMT). This group of stocks’ market caps resemble SPGI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MMM | 46 | 1624838 | 4 |
| ABNB | 58 | 2712558 | 0 |
| SYK | 46 | 3364535 | -2 |
| TEAM | 60 | 6079499 | -4 |
| BKNG | 96 | 8429836 | -4 |
| GSK | 31 | 1658987 | 3 |
| LMT | 51 | 1284495 | -7 |
| Average | 55.4 | 3593535 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 55.4 hedge funds with bullish positions and the average amount invested in these stocks was $3594 million. That figure was $7037 million in SPGI’s case. Booking Holdings Inc. (NASDAQ:BKNG) is the most popular stock in this table. On the other hand GlaxoSmithKline plc (NYSE:GSK) is the least popular one with only 31 bullish hedge fund positions. S&P Global Inc. (NYSE:SPGI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SPGI is 76.2. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately, SPGI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on SPGI were disappointed as the stock returned -2.1% since the end of September (through 1/31) 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 all of these stocks already outperformed the market since 2019.
Follow S&P Global Inc. (NYSE:SPGI)
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Disclosure: None. This article was originally published at Insider Monkey.
