Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that’s why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can’t match. So should one consider investing in Advanced Micro Devices, Inc. (NYSE:AMD)? The smart money sentiment can provide an answer to this question.
Advanced Micro Devices, Inc. (NYSE:AMD) investors should pay attention to an increase in hedge fund sentiment in recent months. At the end of this article we will also compare AMD to other stocks including Lincoln Electric Holdings, Inc. (NASDAQ:LECO), Juno Therapeutics Inc (NASDAQ:JUNO), and Graphic Packaging Holding Company (NYSE:GPK) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, we’re going to review the fresh action regarding Advanced Micro Devices, Inc. (NYSE:AMD).
How are hedge funds trading Advanced Micro Devices, Inc. (NYSE:AMD)?
At Q3’s end, a total of 47 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 88% from the second quarter of 2016. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the most valuable position in Advanced Micro Devices, Inc. (NYSE:AMD), worth close to $109.8 million, amounting to 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Marshall Wace LLP, led by Paul Marshall and Ian Wace, holding a $72.2 million position; 0.5% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions contain D. E. Shaw’s D E Shaw, and Leon Shaulov’s Maplelane Capital.