Is Liberty Interactive Corp (NASDAQ:QVCA) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Liberty Interactive Corp (NASDAQ:QVCA) was in 77 hedge funds’ portfolios at the end of the third quarter of 2016. QVCA shareholders have witnessed an increase in enthusiasm from smart money of late. There were 75 hedge funds in our database with QVCA holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Nucor Corporation (NYSE:NUE), Smith & Nephew plc (ADR) (NYSE:SNN), and Concho Resources Inc. (NYSE:CXO) to gather more data points.
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Keeping this in mind, we’re going to check out the fresh action encompassing Liberty Interactive Corp (NASDAQ:QVCA).
How have hedgies been trading Liberty Interactive Corp (NASDAQ:QVCA)?
At the end of the third quarter, a total of 77 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 3% uptick from one quarter earlier. Hedge fund ownership of the stock has been volatile over the past several quarters, with shares being held by between 67 and 79 hedge funds. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, FPR Partners, managed by Bob Peck and Andy Raab, holds the biggest position in Liberty Interactive Corp (NASDAQ:QVCA). FPR Partners has a $536.5 million position in the stock, comprising 12.1% of its 13F portfolio. The second largest stake is held by D E Shaw, founded by David E. Shaw, which holds a $178.9 million position. Some other members of the smart money that hold long positions comprise Curtis Macnguyen’s Ivory Capital (Investment Mgmt) and Thomas Bancroft’s Makaira Partners.
As aggregate interest increased, key hedge funds have jumped into Liberty Interactive Corp (NASDAQ:QVCA) headfirst. Brahman Capital, managed by Peter Adam Hochfelder, created the biggest call position in Liberty Interactive Corp (NASDAQ:QVCA). Brahman Capital had $100.3 million invested in the holding at the end of the quarter. John Armitage’s Egerton Capital Limited also made a $36.5 million investment in the stock during the quarter. The other funds with brand new QVCA positions are Steven Tananbaum’s GoldenTree Asset Management, Larry Petrella and Michael Siminerio’s PineView Asset Management, and Adam Wolfberg and Steven Landry’s EastBay Asset Management.
Let’s now review hedge fund activity in other stocks similar to Liberty Interactive Corp (NASDAQ:QVCA). We will take a look at Nucor Corporation (NYSE:NUE), Smith & Nephew plc (ADR) (NYSE:SNN), Concho Resources Inc. (NYSE:CXO), and Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG). This group of stocks’ market valuations resemble QVCA’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NUE | 29 | 415841 | -3 |
| SNN | 11 | 233062 | 1 |
| CXO | 34 | 714443 | -4 |
| SHG | 7 | 14087 | -2 |
As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $344 million. That figure was $3.08 billion in QVCA’s case. Concho Resources Inc. (NYSE:CXO) is the most popular stock in this table. On the other hand Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Liberty Interactive Corp (NASDAQ:QVCA) is far more popular among hedge funds. Considering that hedge funds are quite 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.
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