How have hedgies been trading Netflix, Inc. (NASDAQ:NFLX)?
Heading into 2016, a total of 64 of the hedge funds tracked by Insider Monkey were long this stock, a 12% rise from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly (or had already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Chase Coleman’s Tiger Global Management LLC has the number one position in Netflix, Inc. (NASDAQ:NFLX), worth close to $2.06 billion, accounting for 16.5% of its total 13F portfolio. On Tiger Global Management LLC’s heels is Karthik Sarma of SRS Investment Management, with a $1.19 billion position; the fund manager has 40.3% of his 13F portfolio invested in the stock. Remaining peers with similar optimism consist of Andreas Halvorsen’s Viking Global, Philippe Laffont’s Coatue Management and David Goel and Paul Ferri’s Matrix Capital Management.
Consequently, specific money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the biggest position in Netflix, Inc. (NASDAQ:NFLX). Arrowstreet Capital had $174.2 million invested in the company at the end of the quarter. Matt Sirovich and Jeremy Mindich’s Scopia Capital also made a $136.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Will Snellings’ Marianas Fund Management, Ken Griffin’s Citadel Investment Group, and Zach Schreiber’s Point State Capital.
Let’s now take a look at hedge fund activity in other stocks similar to Netflix, Inc. (NASDAQ:NFLX). These stocks are The Bank of Nova Scotia (USA) (NYSE:BNS), PNC Financial Services (NYSE:PNC), NextEra Energy, Inc. (NYSE:NEE), and The TJX Companies, Inc. (NYSE:TJX). This group of stocks’ market valuations resemble NFLX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BNS | 14 | 194282 | -3 |
| PNC | 40 | 1434375 | 7 |
| NEE | 38 | 1526977 | -5 |
| TJX | 36 | 1422413 | -1 |
As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.15 billion. That figure was $7.47 billion in NFLX’s case. PNC Financial Services (NYSE:PNC) is the most popular stock in this table. On the other hand The Bank of Nova Scotia (USA) (NYSE:BNS) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Netflix, Inc. (NASDAQ:NFLX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have a lot of money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio if you believe Netflix can sustain strong user growth and begin to grow its earnings.
