Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaire Ken Fisher Loves This Indian IT Company

The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Infosys Ltd ADR (NYSE:INFY).

One of Five Indian Stocks Hedge Funds Are Fond of, Infosys Ltd ADR (NYSE:INFY) was owned by 16 of the funds tracked by Insider Monkey’s database as of the end of the second quarter, which was flat quarter-over-quarter. However, the value of hedge funds’ positions fell by over $230 million during Q2, even as shares posted double-digit gains. With its 3.55% dividend yield, Infosys was one of 25 Dividend Stocks that Billionaire Ken Fisher is Bullish On as of September 30.

At the moment there are a lot of metrics stock traders use to appraise publicly traded companies. A pair of the less known metrics are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the top investment managers can beat the broader indices by a superb margin (see the details here).

AQR CAPITAL MANAGEMENT

Cliff Asness of AQR Capital Management

How are hedge funds trading Infosys Ltd ADR (NYSE:INFY)?

Heading into the fourth quarter of 2018, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the previous quarter. On the other hand, there were a total of 19 hedge funds with a bullish position in INFY in the middle of 2017. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

INFY_nov2018

Of the funds tracked by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the number one position in Infosys Ltd ADR (NYSE:INFY). Fisher Asset Management has a $420 million position in the stock, comprising 0.5% of its 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which holds a $208.9 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors that are bullish comprise Bernard Horn’s Polaris Capital Management, Donald Yacktman’s Yacktman Asset Management and Howard Marks’ Oaktree Capital Management.

Since Infosys Ltd ADR (NYSE:INFY) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few fund managers who sold off their positions entirely by the end of the second quarter. Intriguingly, David Blood and Al Gore’s Generation Investment Management cut the largest investment of all the hedgies tracked by Insider Monkey, valued at close to $342.7 million in stock, and David Kowitz and Sheldon Kasowitz’s Indus Capital was far behind this move, as the fund sold off about $8.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Infosys Ltd ADR (NYSE:INFY) but similarly valued. These stocks are Carnival Corporation (NYSE:CCL), Constellation Brands, Inc. (NYSE:STZ), Marsh & McLennan Companies, Inc. (NYSE:MMC), and CIGNA Corporation (NYSE:CI). This group of stocks’ market values are closest to INFY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CCL 29 697083 -21
STZ 62 6024204 3
MMC 22 832694 -11
CI 49 3078227 -17

As you can see these stocks had an average of 41 hedge funds with bullish positions and the average amount invested in these stocks was $2.66 billion. That figure was $1.09 billion in INFY’s case. Constellation Brands, Inc. (NYSE:STZ) is the most popular stock in this table. On the other hand Marsh & McLennan Companies, Inc. (NYSE:MMC) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Infosys Ltd ADR (NYSE:INFY) is even less popular than MMC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...