After several tireless days we have finished crunching the numbers from the more than 700 13F filings issued by the successful hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards SYNNEX Corporation (NYSE:SNX).
SYNNEX Corporation (NYSE:SNX) was in 17 hedge funds’ portfolios at the end of September. SNX has seen an increase in activity from the world’s largest hedge funds lately. There were 13 hedge funds in our database with SNX holdings at the end of the previous quarter. At the end of this article we will also compare SNX to other stocks including Williams-Sonoma, Inc. (NYSE:WSM), Vermilion Energy Inc (NYSE:VET), and Lazard Ltd (NYSE:LAZ) to get a better sense of its popularity.
Follow Td Synnex Corp (NYSE:SNX)
Follow Td Synnex Corp (NYSE:SNX)
We care about hedge fund sentiment because historically hedge funds’ stock picks delivered strong risk adjusted returns. There are certain segments of the market where hedge funds’ stock picks performed much better than its benchmarks. For instance, the 30 most popular mid-cap stocks among the best performing hedge funds returned 18% over the last 12 months outpacing S&P 500 Index by more than 10 percentage points. We developed this strategy 2.5 years ago and started sharing its picks in our quarterly newsletter. It bested the S&P 500 Index ETFs by delivering a solid 39% vs. 22% gain for its benchmarks.
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What have hedge funds been doing with SYNNEX Corporation (NYSE:SNX)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 31% increase from the previous quarter, as hedge fund ownership of SNX jumps to a yearly high. Below, you can check out the change in hedge fund sentiment towards SNX over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, AQR Capital Management, led by Cliff Asness, holds the number one position in SYNNEX Corporation (NYSE:SNX). AQR Capital Management has a $91.7 million position in the stock. The second most bullish fund manager is Renaissance Technologies, one of the largest hedge funds in the world, which holds an $11.8 million position. Other hedge funds and institutional investors that hold long positions consist of John Overdeck and David Siegel’s Two Sigma Advisors, George Hall’s Clinton Group, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Consequently, key hedge funds were breaking ground themselves. Clinton Group established the most valuable position in SYNNEX Corporation (NYSE:SNX). Clinton Group had $5.7 million invested in the company at the end of the quarter. Mike Vranos’ Ellington also made a $1.1 million investment in the stock during the quarter. The other funds with brand new SNX positions are Ken Griffin’s Citadel Investment Group and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as SYNNEX Corporation (NYSE:SNX) but similarly valued. We will take a look at Williams-Sonoma, Inc. (NYSE:WSM), Vermilion Energy Inc (NYSE:VET), Lazard Ltd (NYSE:LAZ), and Store Capital Corp (NYSE:STOR). This group of stocks’ market values match SNX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WSM | 18 | 458901 | 0 |
| VET | 8 | 10451 | 0 |
| LAZ | 14 | 420808 | -4 |
| STOR | 11 | 142506 | -6 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $258 million. That figure was $127 million in SNX’s case. Williams-Sonoma, Inc. (NYSE:WSM) is the most popular stock in this table. On the other hand Vermilion Energy Inc (NYSE:VET) is the least popular one with only 8 bullish hedge fund positions. SYNNEX Corporation (NYSE:SNX) is not the most popular stock in this group but hedge fund interest is still above average and rapidly improving. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are piling on recently. In this regard, SNX might be a good candidate to consider taking a long position in.
Disclosure: None
