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 June. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is 10x Genomics, Inc. (NASDAQ:TXG), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is 10x Genomics, Inc. (NASDAQ:TXG) the right pick for your portfolio? Hedge funds were in an optimistic mood. The number of bullish hedge fund positions went up by 5 lately. 10x Genomics, Inc. (NASDAQ:TXG) was in 28 hedge funds’ portfolios at the end of June. The all time high for this statistic is 33. Our calculations also showed that TXG isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the 21st century investor’s toolkit there are tons of methods shareholders use to size up their stock investments. A pair of the most innovative methods are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the best investment managers can outpace the S&P 500 by a solid amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.
David Harding of Winton Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s go over the key hedge fund action regarding 10x Genomics, Inc. (NASDAQ:TXG).
Do Hedge Funds Think TXG Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 22% from the previous quarter. On the other hand, there were a total of 19 hedge funds with a bullish position in TXG a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Catherine D. Wood’s ARK Investment Management has the biggest position in 10x Genomics, Inc. (NASDAQ:TXG), worth close to $842 million, amounting to 1.6% of its total 13F portfolio. Coming in second is 12 West Capital Management, led by Joel Ramin, holding a $376.4 million position; the fund has 15.8% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism consist of Jonathan Soros’s JS Capital, Rick Slocum’s Harvard Management Co and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position 12 West Capital Management allocated the biggest weight to 10x Genomics, Inc. (NASDAQ:TXG), around 15.78% of its 13F portfolio. Andar Capital is also relatively very bullish on the stock, earmarking 6.81 percent of its 13F equity portfolio to TXG.
As industrywide interest jumped, some big names were breaking ground themselves. Segantii Capital, managed by Simon Sadler, initiated the largest position in 10x Genomics, Inc. (NASDAQ:TXG). Segantii Capital had $4.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $4.4 million investment in the stock during the quarter. The other funds with brand new TXG positions are Mark Coe’s Intrinsic Edge Capital, David Harding’s Winton Capital Management, and Benjamin A. Smith’s Laurion Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to 10x Genomics, Inc. (NASDAQ:TXG). We will take a look at PT Telekomunikasi Indonesia (NYSE:TLK), Tractor Supply Company (NASDAQ:TSCO), Burlington Stores Inc (NYSE:BURL), Cheniere Energy Partners LP (NYSE:CQP), Ventas, Inc. (NYSE:VTR), Expeditors International of Washington (NASDAQ:EXPD), and FleetCor Technologies, Inc. (NYSE:FLT). This group of stocks’ market values match TXG’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TLK | 5 | 108737 | 1 |
| TSCO | 38 | 1374315 | 9 |
| BURL | 43 | 1690108 | 11 |
| CQP | 2 | 4279 | 0 |
| VTR | 25 | 562555 | -2 |
| EXPD | 29 | 498402 | 8 |
| FLT | 40 | 1876911 | 1 |
| Average | 26 | 873615 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $874 million. That figure was $1447 million in TXG’s case. Burlington Stores Inc (NYSE:BURL) is the most popular stock in this table. On the other hand Cheniere Energy Partners LP (NYSE:CQP) is the least popular one with only 2 bullish hedge fund positions. 10x Genomics, Inc. (NASDAQ:TXG) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TXG is 67.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.9% in 2021 through October 15th and beat the market again by 4.5 percentage points. Unfortunately TXG wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TXG were disappointed as the stock returned -22.2% since the end of June (through 10/15) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow 10X Genomics Inc. (NASDAQ:TXG)
Follow 10X Genomics Inc. (NASDAQ:TXG)
Suggested Articles:
- 10 Best Asian Stocks to Buy Now
- 25 Best Things to Do in NYC During COVID-19
- 10 Best Growth Stocks To Buy Now
Disclosure: None. This article was originally published at Insider Monkey.
