With the three major indexes down 1% or more, T-Mobile US Inc (NASDAQ:TMUS), Sirius XM Holdings Inc. (NASDAQ:SIRI), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Sonic Corporation (NASDAQ:SONC), and Oracle Corporation (NYSE:ORCL) are each trending today following different developments that we are going to discuss in this article.
Given that Insider Monkey has done a lot of research into what the smart money likes and doesn’t like, let’s also analyze relevant hedge fund sentiment toward these stocks. But why do we track hedge fund activity? From one point of view we can argue that hedge funds are consistently underperforming when it comes to net returns over the last three years, when compared to the S&P 500. But that doesn’t mean that we should completely neglect their activity. There are various reasons behind the low hedge fund returns. Our research indicated that hedge funds’ long positions actually beat the market. In our back-tests covering the 1999-2012 period hedge funds’ top small-cap stocks edged the S&P 500 index by double digits annually. The 15 most popular small-cap stock picks among hedge funds also have bested passive index funds by around 53 percentage points since September 2012 (see the details here).
T-Mobile US Inc (NASDAQ:TMUS) continues to grow, as the renegade ‘uncarrier’ announced that it added 8.3 million net subscribers in 2015, marking the second straight year that T-Mobile US Inc (NASDAQ:TMUS) has added more than 8 million subscribers to its rolls. Many users are switching to T-Mobile because of the cell carrier’s affordable plans and the company’s ‘Binge On’ video streaming option. Despite the good news, T-Mobile shares are off by 1.3% along with the broader market as the stock takes some time to consolidate its excellent 2015 gains.
In other news, Sirius XM Holdings Inc. (NASDAQ:SIRI) is slightly in the red today after the company announced that it added 2.3 million subscribers in 2015, exceeding the 2 million that management previously predicted. Given the margin leverage associated with satellite radio, the more subscribers Sirius XM Holdings Inc. (NASDAQ:SIRI) gets, the more profitable it becomes. Of the around 730 elite funds we track, 35 funds owned $1.4 billion of Sirius XM Holdings Inc. (NASDAQ:SIRI)’s shares at the end of the third quarter, versus 32 funds and $1.47 billion respectively on June 30.
On the next page, we examine Valeant Pharmaceuticals Intl Inc, Sonic Corporation, and Oracle Corporation.