Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Cypress Semiconductor Corporation (NASDAQ:CY), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Cypress Semiconductor Corporation (NASDAQ:CY) shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. CY was in 24 hedge funds’ portfolios at the end of September. There were 23 hedge funds in our database with CY holdings at the end of the previous quarter. Our calculations also showed that CY isn’t among the 30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We’re going to take a gander at the recent hedge fund action surrounding Cypress Semiconductor Corporation (NASDAQ:CY).
Hedge fund activity in Cypress Semiconductor Corporation (NASDAQ:CY)
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from one quarter earlier. By comparison, 28 hedge funds held shares or bullish call options in CY heading into this year. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Cypress Semiconductor Corporation (NASDAQ:CY) was held by GAMCO Investors, which reported holding $24 million worth of stock at the end of September. It was followed by PDT Partners with a $23.3 million position. Other investors bullish on the company included Cardinal Capital, Millennium Management, and Royce & Associates.
As aggregate interest increased, some big names have jumped into Cypress Semiconductor Corporation (NASDAQ:CY) headfirst. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most outsized call position in Cypress Semiconductor Corporation (NASDAQ:CY). Balyasny Asset Management had $9 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also made a $7.8 million investment in the stock during the quarter. The following funds were also among the new CY investors: Joe DiMenna’s ZWEIG DIMENNA PARTNERS, Matthew Hulsizer’s PEAK6 Capital Management, and Steve Cohen’s Point72 Asset Management.
Let’s now take a look at hedge fund activity in other stocks similar to Cypress Semiconductor Corporation (NASDAQ:CY). These stocks are Popular Inc (NASDAQ:BPOP), Bruker Corporation (NASDAQ:BRKR), Inogen Inc (NASDAQ:INGN), and Kemper Corporation (NYSE:KMPR). This group of stocks’ market caps match CY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BPOP | 28 | 786223 | 1 |
| BRKR | 24 | 250368 | -2 |
| INGN | 21 | 282998 | 4 |
| KMPR | 14 | 113382 | 5 |
| Average | 21.75 | 358243 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $358 million. That figure was $162 million in CY’s case. Popular Inc (NASDAQ:BPOP) is the most popular stock in this table. On the other hand Kemper Corporation (NYSE:KMPR) is the least popular one with only 14 bullish hedge fund positions. Cypress Semiconductor Corporation (NASDAQ:CY) 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 BPOP might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
