We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of ZoomInfo Technologies Inc. (NASDAQ:ZI) based on that data.
Is ZoomInfo Technologies Inc. (NASDAQ:ZI) a buy right now? The smart money was betting on the stock. The number of bullish hedge fund positions rose by 22 recently. ZoomInfo Technologies Inc. (NASDAQ:ZI) was in 57 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 35. This means the bullish number of hedge fund positions in this stock currently sits at its new all time high. Our calculations also showed that ZI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 35 hedge funds in our database with ZI positions at the end of the second quarter.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let’s go over the recent hedge fund action encompassing ZoomInfo Technologies Inc. (NASDAQ:ZI).
David E. Shaw of D.E. Shaw
Do Hedge Funds Think ZI Is A Good Stock To Buy Now?
At Q3’s end, a total of 57 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 63% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards ZI over the last 25 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
The largest stake in ZoomInfo Technologies Inc. (NASDAQ:ZI) was held by GQG Partners, which reported holding $323.8 million worth of stock at the end of September. It was followed by SRS Investment Management with a $254.2 million position. Other investors bullish on the company included Viking Global, Alkeon Capital Management, and Jericho Capital Asset Management. In terms of the portfolio weights assigned to each position Shannon River Fund Management allocated the biggest weight to ZoomInfo Technologies Inc. (NASDAQ:ZI), around 4.25% of its 13F portfolio. One Fin Capital Management is also relatively very bullish on the stock, setting aside 3.97 percent of its 13F equity portfolio to ZI.
As aggregate interest increased, key hedge funds were breaking ground themselves. GQG Partners, managed by Rajiv Jain, assembled the largest position in ZoomInfo Technologies Inc. (NASDAQ:ZI). GQG Partners had $323.8 million invested in the company at the end of the quarter. Karthik Sarma’s SRS Investment Management also made a $254.2 million investment in the stock during the quarter. The other funds with brand new ZI positions are Josh Resnick’s Jericho Capital Asset Management, D. E. Shaw’s D E Shaw, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as ZoomInfo Technologies Inc. (NASDAQ:ZI) but similarly valued. We will take a look at Caesars Entertainment Inc. (NASDAQ:CZR), Credit Suisse Group AG (NYSE:CS), Rogers Communications Inc. (NYSE:RCI), Splunk Inc (NASDAQ:SPLK), Tractor Supply Company (NASDAQ:TSCO), Fox Corporation (NASDAQ:FOXA), and DISH Network Corp. (NASDAQ:DISH). This group of stocks’ market values match ZI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CZR | 64 | 1882913 | -9 |
| CS | 8 | 76139 | -2 |
| RCI | 17 | 366650 | 0 |
| SPLK | 47 | 1251280 | 0 |
| TSCO | 33 | 1218656 | -5 |
| FOXA | 32 | 616945 | -3 |
| DISH | 51 | 2439908 | 0 |
| Average | 36 | 1121784 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $1122 million. That figure was $1961 million in ZI’s case. Caesars Entertainment Inc. (NASDAQ:CZR) is the most popular stock in this table. On the other hand Credit Suisse Group AG (NYSE:CS) is the least popular one with only 8 bullish hedge fund positions. ZoomInfo Technologies Inc. (NASDAQ:ZI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ZI is 83.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately ZI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ZI were disappointed as the stock returned 0.8% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Zoominfo Technologies Inc. (NASDAQ:ZI)
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Disclosure: None. This article was originally published at Insider Monkey.
