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 30th, so let’s proceed with the discussion of the hedge fund sentiment on Twitter Inc (NYSE:TWTR).
Twitter Inc (NYSE:TWTR) was in 94 hedge funds’ portfolios at the end of September. The all time high for this statistic is 107. TWTR has experienced an increase in activity from the world’s largest hedge funds in recent months. There were 89 hedge funds in our database with TWTR positions at the end of the second quarter. Our calculations also showed that TWTR ranked 24th among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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. With all of this in mind we’re going to take a peek at the fresh hedge fund action encompassing Twitter Inc (NYSE:TWTR).
Paul Singer of Elliott Management
Do Hedge Funds Think TWTR Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 94 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TWTR over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Twitter Inc (NYSE:TWTR) was held by Lone Pine Capital, which reported holding $1300.4 million worth of stock at the end of September. It was followed by ARK Investment Management with a $832.5 million position. Other investors bullish on the company included Elliott Investment Management, SRS Investment Management, and Atreides Management. In terms of the portfolio weights assigned to each position Ivy Lane Capital allocated the biggest weight to Twitter Inc (NYSE:TWTR), around 13.28% of its 13F portfolio. Nishkama Capital is also relatively very bullish on the stock, dishing out 10.62 percent of its 13F equity portfolio to TWTR.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Atreides Management, managed by Gavin Baker, created the largest call position in Twitter Inc (NYSE:TWTR). Atreides Management had $60.4 million invested in the company at the end of the quarter. David Fear’s Thunderbird Partners also made a $57.9 million investment in the stock during the quarter. The other funds with brand new TWTR positions are Leon Shaulov’s Maplelane Capital, Joshua Nash’s Ulysses Management, and Brandon Haley’s Holocene Advisors.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Twitter Inc (NYSE:TWTR) but similarly valued. We will take a look at Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG), Coinbase Global Inc. (NASDAQ:COIN), Eni SpA (NYSE:E), Freeport-McMoRan Inc. (NYSE:FCX), Fortinet Inc (NASDAQ:FTNT), Agilent Technologies Inc. (NYSE:A), and Enterprise Products Partners L.P. (NYSE:EPD). This group of stocks’ market valuations resemble TWTR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SMFG | 11 | 50245 | 0 |
| COIN | 50 | 2968201 | 50 |
| E | 3 | 75414 | 0 |
| FCX | 66 | 3213384 | -10 |
| FTNT | 38 | 1139238 | 6 |
| A | 46 | 3135637 | 7 |
| EPD | 25 | 233255 | -3 |
| Average | 34.1 | 1545053 | 7.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 34.1 hedge funds with bullish positions and the average amount invested in these stocks was $1545 million. That figure was $6306 million in TWTR’s case. Freeport-McMoRan Inc. (NYSE:FCX) is the most popular stock in this table. On the other hand Eni SpA (NYSE:E) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Twitter Inc (NYSE:TWTR) is more popular among hedge funds. Our overall hedge fund sentiment score for TWTR is 86.4. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately TWTR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TWTR were disappointed as the stock returned -27.2% since the end of the third quarter (through 11/30) 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.
Follow Twitter Inc. (NYSE:TWTR)
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Disclosure: None. This article was originally published at Insider Monkey.
