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 873 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their June 30th holdings, data that is available nowhere else. Should you consider DISH Network Corp. (NASDAQ:DISH) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Hedge fund interest in DISH Network Corp. (NASDAQ:DISH) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that DISH isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). At the end of this article we will also compare DISH to other stocks including Qorvo Inc (NASDAQ:QRVO), Cheniere Energy, Inc. (NYSE:LNG), and Martin Marietta Materials, Inc. (NYSE:MLM) to get a better sense of its popularity.
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 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 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, billionaire John Paulson is loading up on the miners, so we are checking out stock pitches like this mining 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. With all of this in mind we’re going to review the key hedge fund action regarding DISH Network Corp. (NASDAQ:DISH).
Do Hedge Funds Think DISH Is A Good Stock To Buy Now?
At Q2’s end, a total of 51 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 DISH over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in DISH Network Corp. (NASDAQ:DISH) was held by Eagle Capital Management, which reported holding $793.5 million worth of stock at the end of June. It was followed by Palestra Capital Management with a $389.3 million position. Other investors bullish on the company included Jericho Capital Asset Management, Atreides Management, and Paulson & Co. In terms of the portfolio weights assigned to each position Pennant Capital Management allocated the biggest weight to DISH Network Corp. (NASDAQ:DISH), around 16.64% of its 13F portfolio. Key Square Capital Management is also relatively very bullish on the stock, designating 15.02 percent of its 13F equity portfolio to DISH.
Seeing as DISH Network Corp. (NASDAQ:DISH) has faced bearish sentiment from hedge fund managers, logic holds that there lies a certain “tier” of fund managers who sold off their entire stakes last quarter. At the top of the heap, Robert Henry Lynch’s Aristeia Capital dumped the biggest investment of the 750 funds followed by Insider Monkey, totaling about $96.3 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also sold off its stock, about $53.6 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks similar to DISH Network Corp. (NASDAQ:DISH). We will take a look at Qorvo Inc (NASDAQ:QRVO), Cheniere Energy, Inc. (NYSE:LNG), Martin Marietta Materials, Inc. (NYSE:MLM), Edison International (NYSE:EIX), Extra Space Storage, Inc. (NYSE:EXR), Kellogg Company (NYSE:K), and Paycom Software Inc (NYSE:PAYC). This group of stocks’ market values are similar to DISH’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| QRVO | 40 | 2300268 | -1 |
| LNG | 49 | 2944377 | 9 |
| MLM | 34 | 2014762 | -7 |
| EIX | 18 | 1386816 | -17 |
| EXR | 21 | 176013 | -7 |
| K | 32 | 482871 | 0 |
| PAYC | 39 | 1149714 | -7 |
| Average | 33.3 | 1493546 | -4.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 33.3 hedge funds with bullish positions and the average amount invested in these stocks was $1494 million. That figure was $2543 million in DISH’s case. Cheniere Energy, Inc. (NYSE:LNG) is the most popular stock in this table. On the other hand Edison International (NYSE:EIX) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks DISH Network Corp. (NASDAQ:DISH) is more popular among hedge funds. Our overall hedge fund sentiment score for DISH is 80.5. 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 29.6% in 2021 through November 5th and still beat the market by 3.1 percentage points. Unfortunately DISH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DISH were disappointed as the stock returned -9.4% since the end of the second quarter (through 11/5) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
