What Do Hedge Funds Think of Skyworks Solutions Inc (SWKS)?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Skyworks Solutions Inc (NASDAQ:SWKS).

Skyworks Solutions Inc (NASDAQ:SWKS) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 36 hedge funds’ portfolios at the end of September. At the end of this article we will also compare SWKS to other stocks including EnergySolutions, Inc. (NYSE:ES), Omnicom Group Inc. (NYSE:OMC), and SK Telecom Co., Ltd. (ADR) (NYSE:SKM) to get a better sense of its popularity.

According to most shareholders, hedge funds are perceived as slow, outdated financial vehicles of the past. While there are greater than an 8000 funds with their doors open at the moment, Our experts choose to focus on the top tier of this group, about 700 funds. These hedge fund managers administer the majority of all hedge funds’ total capital, and by tracking their first-class investments, Insider Monkey has revealed a few investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per year for a decade in their back tests.

With all of this in mind, we’re going to take a glance at the fresh action surrounding Skyworks Solutions Inc (NASDAQ:SWKS).

What have hedge funds been doing with Skyworks Solutions Inc (NASDAQ:SWKS)?

Of the funds tracked by Insider Monkey, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Skyworks Solutions Inc (NASDAQ:SWKS). AQR Capital Management has a $120 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which holds a $79.3 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that are bullish include Dmitry Balyasny’s Balyasny Asset Management, and David Harding’s Winton Capital Management.

Intriguingly, Jim Simons’s Renaissance Technologies sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, comprising about $41.7 million in stock, and Ken Heebner’s Capital Growth Management was right behind this move, as the fund dumped about $32.8 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Skyworks Solutions Inc (NASDAQ:SWKS). We will take a look at EnergySolutions, Inc. (NYSE:ES), Omnicom Group Inc. (NYSE:OMC), SK Telecom Co., Ltd. (ADR) (NYSE:SKM), and Alliance Data Systems Corporation (NYSE:ADS). This group of stocks’ market valuations match SWKS’s market valuation.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $577 million. That figure was $572 million in SWKS’s case. Alliance Data Systems Corporation (NYSE:ADS) is the most popular stock in this table. On the other hand SK Telecom Co., Ltd. (ADR) (NYSE:SKM) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Skyworks Solutions Inc (NASDAQ:SWKS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.