Should You Be Bullish On NetEase, Inc (ADR) (NTES), NVIDIA Corporation (NVDA) & Two Other Stocks?

Sensato Capital Management is a hedge fund, managed by Ernest Chow and Jonathan Howe, with an equity portfolio that was worth $479.97 million on September 30, down from $618.66 million on June 30. The fund’s weighted average return amounted to 14.84%, based on its 75 ‘relevant’ holdings. In our methodology, a ‘relevant’ position is a long position in a company with a market cap of at least $1 billion. Although our way of calculating the return differs from the fund’s actual return, it still helps us determine whether or not is worth imitating the fund’s investment moves. Having that in mind, let’s start examining the aforementioned companies.

In this article, we’ll take a look at what Sensato (and other funds from our database) think about four companies, including NetEase, Inc (ADR) (NASDAQ:NTES), NVIDIA Corporation (NASDAQ:NVDA), STMicroelectronics N.V. (ADR) (NYSE:STM), and Vishay Intertechnology (NYSE:VSH)?

Let’s begin with NetEase, Inc (ADR) (NASDAQ:NTES), in which Sensato Capital Management cut its stake by 39% to 82,363 shares worth $19.83 million during the second quarter. In the previous quarter, the fund had raised its stake by 27% to 136,115 shares. The stock advanced by 25.1% during the third quarter. At the end of June, 27 funds tracked by Insider Monkey were bullish on this stock, down by 13% from one quarter earlier. The largest stake in NetEase, Inc (ADR) (NASDAQ:NTES) was held by Orbis Investment Management, which reported holding $1.71 billion worth of stock as of the end of June. It was followed by Renaissance Technologies with a $462.1 million position. Other investors bullish on the company included Alkeon Capital Management, Arrowstreet Capital, and Two Sigma Advisors.

Amid a 46% gain registered by NVIDIA Corporation (NASDAQ:NVDA)’s stock during the third quarter, Sensato unloaded it entire stake in the company after having initiated a stake containing 537,700 shares during the second quarter. During the second quarter, the number of funds from our database long NVIDIA Corporation went up by 16% to 50. More specifically, Egerton Capital Limited was the largest shareholder of NVIDIA Corporation (NASDAQ:NVDA), with a stake worth $223.4 million reported as of the end of June. Trailing Egerton Capital Limited was Hudson Bay Capital Management, which amassed a stake valued at $215.5 million. Renaissance Technologies, Arrowstreet Capital, and Millennium Management also held valuable positions in the company.

In STMicroelectronics N.V. (ADR) (NYSE:STM), a global semiconductor company, Sensato Capital Management increased its stake by 32% in the June quarter, and added another 175,728 shares in the following three months, reporting a position worth $29.51 million containing 3,62 million shares. During the third quarter, the stock advanced by 39.4%. Seven funds followed by our team held shares of STMicroelectronics at the end of June, unchanged over the quarter. One of the largest stakes in STMicroelectronics N.V. (ADR) (NYSE:STM) was held by Renaissance Technologies, which amassed a stake valued at $7.5 million at the end of June. Arrowstreet Capital, D E Shaw, and Citadel Investment Group also held valuable positions in the company.

Last stock we are going to examine in this article is semiconductor manufacturer Vishay Intertechnology (NYSE:VSH), whose stock grew by 14.2% last quarter. Sensato had increased its position by 62% to 1.61 million shares in the second quarter, but lowered it by 26% to 1.19 million shares in the third quarter, amassing a stake worth $16.75 million at the end of September. During the second quarter, the number of funds followed by us bullish on Vishay Intertechnology declined by 18% to 14. Among them, Royce & Associates, managed by Chuck Royce, held the most valuable position in Vishay Intertechnology (NYSE:VSH), which was worth $93 million at the end of June. The second largest stake was reported by Fisher Asset Management, led by Ken Fisher, holding a $57.1 million position. Some other hedge funds and institutional investors that held long positions included Howard Marks’s Oaktree Capital Management and Cliff Asness’s AQR Capital Management.

Disclosure: None