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Hedge Funds Are Nibbling On Calix Inc (CALX)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Calix Inc (NYSE:CALX).

Is Calix Inc (NYSE:CALX) a healthy stock for your portfolio? The smart money is getting more bullish. The number of bullish hedge fund positions increased by 1 recently. Our calculations also showed that CALX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

To most traders, hedge funds are viewed as worthless, old investment tools of years past. While there are more than 8000 funds with their doors open today, Our experts hone in on the masters of this club, approximately 850 funds. These hedge fund managers handle the lion’s share of the hedge fund industry’s total capital, and by following their top picks, Insider Monkey has determined several investment strategies that have historically outpaced the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .

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At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, blockchain technology’s influence will go beyond online payments. So, we are checking out this futurist’s moonshot opportunities in tech stocks. We interview hedge fund managers and ask them about their best ideas. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. For example we are checking out stocks recommended/scorned by legendary Bill Miller. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Now we’re going to go over the key hedge fund action regarding Calix Inc (NYSE:CALX).

How are hedge funds trading Calix Inc (NYSE:CALX)?

Heading into the second quarter of 2020, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from the fourth quarter of 2019. On the other hand, there were a total of 17 hedge funds with a bullish position in CALX 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.

More specifically, Renaissance Technologies was the largest shareholder of Calix Inc (NYSE:CALX), with a stake worth $21.3 million reported as of the end of September. Trailing Renaissance Technologies was Lynrock Lake, which amassed a stake valued at $19.9 million. Divisar Capital, D E Shaw, and Voce Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Divisar Capital allocated the biggest weight to Calix Inc (NYSE:CALX), around 5.34% of its 13F portfolio. Voce Capital is also relatively very bullish on the stock, setting aside 3.37 percent of its 13F equity portfolio to CALX.

As aggregate interest increased, key hedge funds have been driving this bullishness. Alyeska Investment Group, managed by Anand Parekh, initiated the biggest position in Calix Inc (NYSE:CALX). Alyeska Investment Group had $1.4 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also initiated a $0.4 million position during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Calix Inc (NYSE:CALX) but similarly valued. We will take a look at International General Insurance Holdings Ltd. (NASDAQ:IGIC), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), Xenon Pharmaceuticals Inc (NASDAQ:XENE), and Maverix Metals Inc. (NYSE:MMX). This group of stocks’ market caps match CALX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IGIC 10 12057 -1
PLAY 12 75188 -7
XENE 28 218007 6
MMX 3 12394 1
Average 13.25 79412 -0.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $81 million in CALX’s case. Xenon Pharmaceuticals Inc (NASDAQ:XENE) is the most popular stock in this table. On the other hand Maverix Metals Inc. (NYSE:MMX) is the least popular one with only 3 bullish hedge fund positions. Calix Inc (NYSE:CALX) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.3% in 2020 through June 25th but still beat the market by 16.8 percentage points. Hedge funds were also right about betting on CALX as the stock returned 93.8% in Q2 (through June 25th) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.