With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was Sunrun Inc (NASDAQ:RUN).
Is Sunrun Inc (NASDAQ:RUN) the right pick for your portfolio? Hedge funds were betting on the stock. The number of long hedge fund bets went up by 4 lately. Sunrun Inc (NASDAQ:RUN) was in 45 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 48. Our calculations also showed that RUN isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 41 hedge funds in our database with RUN holdings at the end of March.
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Ole Andreas Halvorsen of Viking Global
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Do Hedge Funds Think RUN Is A Good Stock To Buy Now?
At Q2’s end, a total of 45 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards RUN over the last 24 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Coatue Management held the most valuable stake in Sunrun Inc (NASDAQ:RUN), which was worth $953.1 million at the end of the second quarter. On the second spot was Tiger Global Management LLC which amassed $394.5 million worth of shares. Viking Global, Orbis Investment Management, and Point State 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 Caxton Associates LP allocated the biggest weight to Sunrun Inc (NASDAQ:RUN), around 8.68% of its 13F portfolio. Quaero Capital is also relatively very bullish on the stock, setting aside 4.55 percent of its 13F equity portfolio to RUN.
Now, key money managers have been driving this bullishness. Jericho Capital Asset Management, managed by Josh Resnick, assembled the biggest position in Sunrun Inc (NASDAQ:RUN). Jericho Capital Asset Management had $94.8 million invested in the company at the end of the quarter. Zach Schreiber’s Point State Capital also made a $92 million investment in the stock during the quarter. The other funds with new positions in the stock are Joseph Samuels’s Islet Management, Philip Hempleman’s Ardsley Partners, and Anand Parekh’s Alyeska Investment Group.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sunrun Inc (NASDAQ:RUN) but similarly valued. We will take a look at SentinelOne, Inc. (NYSE:S), Pegasystems Inc. (NASDAQ:PEGA), Cree, Inc. (NASDAQ:CREE), IPG Photonics Corporation (NASDAQ:IPGP), Essential Utilities Inc (NYSE:WTRG), Pentair plc (NYSE:PNR), and Formula One Group (NASDAQ:FWONK). This group of stocks’ market values resemble RUN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| S | 67 | 2062506 | 67 |
| PEGA | 27 | 2029409 | -8 |
| CREE | 31 | 391130 | 1 |
| IPGP | 23 | 399842 | -8 |
| WTRG | 13 | 272737 | -6 |
| PNR | 25 | 748622 | -5 |
| FWONK | 41 | 1724231 | 4 |
| Average | 32.4 | 1089782 | 6.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.4 hedge funds with bullish positions and the average amount invested in these stocks was $1090 million. That figure was $2518 million in RUN’s case. SentinelOne, Inc. (NYSE:S) is the most popular stock in this table. On the other hand Essential Utilities Inc (NYSE:WTRG) is the least popular one with only 13 bullish hedge fund positions. Sunrun Inc (NASDAQ:RUN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for RUN is 66.8. 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 through November 5th and beat the market again by 3.1 percentage points. Unfortunately RUN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on RUN were disappointed as the stock returned 0.7% since the end of June (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 many of these stocks already outperformed the market since 2019.
Follow Sunrun Inc. (NASDAQ:RUN)
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Disclosure: None. This article was originally published at Insider Monkey.
