Is NVIDIA Corporation (NVDA) Going to Burn These Hedge Funds?

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Consequently, key money managers were leading the bulls’ herd. Coatue Management, managed by Philippe Laffont, created the most valuable position in NVIDIA Corporation (NASDAQ:NVDA). Coatue Management had $136.9 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $74.2 million investment in the stock during the quarter. The other funds with new positions in the stock are David Halpert’s Prince Street Capital Management, Solomon Kumin’s Folger Hill Asset Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks similar to NVIDIA Corporation (NASDAQ:NVDA). These stocks are Spectra Energy Corp. (NYSE:SE), Southwest Airlines Co. (NYSE:LUV), Baxter International Inc. (NYSE:BAX), and China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU). This group of stocks’ market caps are closest to NVDA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SE 25 446491 11
LUV 53 2290720 8
BAX 50 4345509 -4
CHU 12 39176 5

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.78 billion. That figure was $1.9 billion in NVDA’s case. Southwest Airlines Co. (NYSE:LUV) is the most popular stock in this table. On the other hand China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) is the least popular one with only 12 bullish hedge fund positions. NVIDIA Corporation (NASDAQ:NVDA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LUV might be a better candidate to consider a long position.

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