The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Xilinx, Inc. (NASDAQ:XLNX) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Xilinx, Inc. (NASDAQ:XLNX) shareholders have witnessed an increase in enthusiasm from smart money lately. Xilinx, Inc. (NASDAQ:XLNX) was in 62 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 66. There were 59 hedge funds in our database with XLNX holdings at the end of June. Our calculations also showed that XLNX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Matthew Halbower of Pentwater Capital
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. Keeping this in mind let’s check out the new hedge fund action encompassing Xilinx, Inc. (NASDAQ:XLNX).
Do Hedge Funds Think XLNX Is A Good Stock To Buy Now?
At Q3’s end, a total of 62 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from one quarter earlier. On the other hand, there were a total of 46 hedge funds with a bullish position in XLNX a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, D E Shaw held the most valuable stake in Xilinx, Inc. (NASDAQ:XLNX), which was worth $632.4 million at the end of the third quarter. On the second spot was Pentwater Capital Management which amassed $435.6 million worth of shares. Matrix Capital Management, Canyon Capital Advisors, and Segantii 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 Sand Grove Capital Partners allocated the biggest weight to Xilinx, Inc. (NASDAQ:XLNX), around 15.89% of its 13F portfolio. Hunting Hill Global Capital is also relatively very bullish on the stock, designating 13.57 percent of its 13F equity portfolio to XLNX.
As one would reasonably expect, key money managers were breaking ground themselves. Taconic Capital, managed by Frank Brosens, created the most outsized call position in Xilinx, Inc. (NASDAQ:XLNX). Taconic Capital had $42.7 million invested in the company at the end of the quarter. Simon Sadler’s Segantii Capital also made a $15.1 million investment in the stock during the quarter. The other funds with brand new XLNX positions are Larry Chen and Terry Zhang’s Tairen Capital, Matthew Halbower’s Pentwater Capital Management, and Michael Rockefeller and KarláKroeker’s Woodline Partners.
Let’s check out hedge fund activity in other stocks similar to Xilinx, Inc. (NASDAQ:XLNX). We will take a look at Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC), Banco Bradesco SA (NYSE:BBD), Nutrien Ltd. (NYSE:NTR), Hilton Worldwide Holdings Inc (NYSE:HLT), Discover Financial Services (NYSE:DFS), Okta, Inc. (NASDAQ:OKTA), and Zscaler, Inc. (NASDAQ:ZS). All of these stocks’ market caps are closest to XLNX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ERIC | 21 | 227446 | 2 |
| BBD | 13 | 228299 | -5 |
| NTR | 30 | 853049 | 2 |
| HLT | 44 | 5364120 | -1 |
| DFS | 37 | 516149 | 0 |
| OKTA | 62 | 2262165 | 5 |
| ZS | 38 | 1624343 | 0 |
| Average | 35 | 1582224 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1582 million. That figure was $4541 million in XLNX’s case. Okta, Inc. (NASDAQ:OKTA) is the most popular stock in this table. On the other hand Banco Bradesco SA (NYSE:BBD) is the least popular one with only 13 bullish hedge fund positions. Xilinx, Inc. (NASDAQ:XLNX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for XLNX is 86.2. 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. 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 still beat the market by 3.6 percentage points. Hedge funds were also right about betting on XLNX as the stock returned 28.4% since the end of Q3 (through 1/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
