Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of NVIDIA Corporation (NASDAQ:NVDA).
NVIDIA Corporation (NASDAQ:NVDA) was in 80 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 95. NVDA investors should pay attention to a decrease in hedge fund sentiment lately. There were 88 hedge funds in our database with NVDA holdings at the end of December. Our calculations also showed that NVDA isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Glen Kacher of Light Street Capital
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Do Hedge Funds Think NVDA Is A Good Stock To Buy Now?
At first quarter’s end, a total of 80 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards NVDA over the last 23 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.
When looking at the institutional investors followed by Insider Monkey, Citadel Investment Group, managed by Ken Griffin, holds the largest position in NVIDIA Corporation (NASDAQ:NVDA). Citadel Investment Group has a $2.3202 billion call position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by GQG Partners, managed by Rajiv Jain, which holds a $1.0572 billion position; 3.9% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions comprise D. E. Shaw’s D E Shaw, Ken Fisher’s Fisher Asset Management and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Panview Capital allocated the biggest weight to NVIDIA Corporation (NASDAQ:NVDA), around 12.23% of its 13F portfolio. Kadensa Capital is also relatively very bullish on the stock, setting aside 7.31 percent of its 13F equity portfolio to NVDA.
Because NVIDIA Corporation (NASDAQ:NVDA) has faced falling interest from hedge fund managers, we can see that there exists a select few fund managers that decided to sell off their positions entirely last quarter. It’s worth mentioning that John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the largest position of all the hedgies monitored by Insider Monkey, worth close to $341.2 million in stock, and Philippe Laffont’s Coatue Management was right behind this move, as the fund cut about $326.8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 8 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to NVIDIA Corporation (NASDAQ:NVDA). We will take a look at The Home Depot, Inc. (NYSE:HD), Paypal Holdings Inc (NASDAQ:PYPL), Intel Corporation (NASDAQ:INTC), ASML Holding N.V. (NASDAQ:ASML), Comcast Corporation (NASDAQ:CMCSA), Verizon Communications Inc. (NYSE:VZ), and Exxon Mobil Corporation (NYSE:XOM). This group of stocks’ market caps match NVDA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HD | 68 | 4359872 | -11 |
| PYPL | 143 | 14717163 | -4 |
| INTC | 83 | 7616792 | 11 |
| ASML | 35 | 3827143 | 5 |
| CMCSA | 88 | 9762151 | 4 |
| VZ | 69 | 11383576 | 2 |
| XOM | 65 | 2770198 | 2 |
| Average | 78.7 | 7776699 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 78.7 hedge funds with bullish positions and the average amount invested in these stocks was $7777 million. That figure was $6205 million in NVDA’s case. Paypal Holdings Inc (NASDAQ:PYPL) is the most popular stock in this table. On the other hand ASML Holding N.V. (NASDAQ:ASML) is the least popular one with only 35 bullish hedge fund positions. NVIDIA Corporation (NASDAQ:NVDA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NVDA is 43.1. 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 25.8% in 2021 through August 6th and still beat the market by 6.7 percentage points. Hedge funds were also right about betting on NVDA as the stock returned 52.6% since the end of Q1 (through 8/6) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Nvidia Corp (NASDAQ:NVDA)
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Disclosure: None. This article was originally published at Insider Monkey.
