Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Valeant and SunEdison, have not done well during the last 12 months due to various reasons. Nevertheless, the data show elite investors’ consensus picks have done well on average. The top 30 mid-cap stocks (market caps between $1 billion and $10 billion) among hedge funds delivered an average return of 18% during the last four quarters. S&P 500 Index returned only 7.6% during the same period and less than 49% of its constituents managed to beat this return. Because their consensus picks have done well, we pay attention to what elite funds and billionaire investors think before doing extensive research on a stock. In this article, we take a closer look at Bristol Myers Squibb Co. (NYSE:BMY) from the perspective of those elite funds.
Bristol Myers Squibb Co. (NYSE:BMY) investors should pay attention to a decrease in support from the world’s elite money managers in recent months. There were 59 investors tracked by us holding shares of the company at the end of September down from 61 funds a quarter earlier. At the end of this article we will also compare BMY to other stocks including British American Tobacco PLC (ADR) (NYSEAMEX:BTI), Amgen, Inc. (NASDAQ:AMGN), and TOTAL S.A. (ADR) (NYSE:TOT) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Keeping this in mind, we’re going to view the latest action encompassing Bristol Myers Squibb Co. (NYSE:BMY).
Hedge fund activity in Bristol Myers Squibb Co. (NYSE:BMY)
Heading into the fourth quarter of 2016, a total of 59 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 3% over the quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, David E. Shaw’s D E Shaw has the biggest position in Bristol Myers Squibb Co. (NYSE:BMY), worth close to $392.8 million, amounting to 0.7% of its total 13F portfolio. Coming in second is Jim Simons’ Renaissance Technologies holding a $255.6 million position; 0.5% of its 13F portfolio is allocated to the stock. Other peers that are bullish comprise Phill Gross and Robert Atchinson’s Adage Capital Management, Principal Global Investors’s Columbus Circle Investors, and Samuel Isaly’s OrbiMed Advisors.