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Hedge Funds Have Never Been This Bullish On Alteryx, Inc. (AYX)

We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Alteryx, Inc. (NYSE:AYX).

Alteryx, Inc. (NYSE:AYX) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. Our calculations also showed that AYX isn’t among the 30 most popular stocks among hedge funds.

In today’s marketplace there are a large number of gauges stock market investors employ to size up publicly traded companies. Two of the best gauges are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the elite fund managers can outperform the market by a very impressive amount (see the details here).

Colin Moran Abdiel Capital

Let’s analyze the latest hedge fund action regarding Alteryx, Inc. (NYSE:AYX).

What have hedge funds been doing with Alteryx, Inc. (NYSE:AYX)?

Heading into the second quarter of 2019, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from the fourth quarter of 2018. On the other hand, there were a total of 16 hedge funds with a bullish position in AYX a year ago. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

AYX_jun2019

The largest stake in Alteryx, Inc. (NYSE:AYX) was held by Abdiel Capital Advisors, which reported holding $336.8 million worth of stock at the end of March. It was followed by Whale Rock Capital Management with a $63.4 million position. Other investors bullish on the company included D E Shaw, Renaissance Technologies, and Arrowstreet Capital.

As industrywide interest jumped, key hedge funds have jumped into Alteryx, Inc. (NYSE:AYX) headfirst. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most outsized position in Alteryx, Inc. (NYSE:AYX). Arrowstreet Capital had $39.9 million invested in the company at the end of the quarter. Gregg Moskowitz’s Interval Partners also made a $14.7 million investment in the stock during the quarter. The following funds were also among the new AYX investors: Steve Cohen’s Point72 Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Joel Greenblatt’s Gotham Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Alteryx, Inc. (NYSE:AYX) but similarly valued. We will take a look at Sinopec Shanghai Petrochemical Co. (NYSE:SHI), Owens Corning (NYSE:OC), GW Pharmaceuticals plc (NASDAQ:GWPH), and Polaris Industries Inc. (NYSE:PII). All of these stocks’ market caps are closest to AYX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SHI 5 12597 -1
OC 27 932300 -13
GWPH 23 540478 -2
PII 16 89139 1
Average 17.75 393629 -3.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $394 million. That figure was $767 million in AYX’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand Sinopec Shanghai Petrochemical Co. (NYSE:SHI) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Alteryx, Inc. (NYSE:AYX) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on AYX as the stock returned 4.8% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.

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

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