At Insider Monkey, we pore over the filings of more than 700 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not ARM Holdings plc (ADR) (NASDAQ:ARMH) makes for a good investment right now.
Is ARM Holdings plc (ADR) (NASDAQ:ARMH) a buy right now? The smart money is in a bearish mood. The number of bullish hedge fund positions dropped by 4 recently. At the end of this article we will also compare ARMH to other stocks including Fiserv, Inc. (NASDAQ:FISV), Aviva Plc (ADR) (NYSE:AV), and NXP Semiconductors NV (NASDAQ:NXPI) to get a better sense of its popularity.
According to most traders, hedge funds are assumed to be unimportant, outdated financial tools of yesteryear. While there are greater than an 8000 funds in operation at present, Our experts hone in on the elite of this group, around 700 funds. It is estimated that this group of investors administer bulk of the smart money’s total asset base, and by paying attention to their unrivaled equity investments, Insider Monkey has spotted numerous investment strategies that have historically defeated the market. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Now, we’re going to take a gander at the new action regarding ARM Holdings plc (ADR) (NASDAQ:ARMH).
What have hedge funds been doing with ARM Holdings plc (ADR) (NASDAQ:ARMH)?
At Q3’s end, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a drop of 19% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in ARM Holdings plc (ADR) (NASDAQ:ARMH). According to its latest quarterly report, the fund has a $56.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is GLG Partners, managed by Noam Gottesman, which holds a $49.1 million call position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions contain Malcolm Fairbairn’s Ascend Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.