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 Mylan N.V. (NASDAQ:MYL).
Mylan N.V. (NASDAQ:MYL) investors should pay attention to an increase in activity from the world’s largest hedge funds recently. MYL was in 49 hedge funds’ portfolios at the end of the first quarter of 2020. There were 47 hedge funds in our database with MYL positions at the end of the previous quarter. Our calculations also showed that MYL 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.
In the eyes of most investors, hedge funds are perceived as slow, old investment tools of yesteryear. While there are greater than 8000 funds trading today, Our experts choose to focus on the elite of this club, about 850 funds. These investment experts shepherd most of all hedge funds’ total asset base, and by keeping track of their highest performing equity investments, Insider Monkey has unearthed several investment strategies that have historically outperformed Mr. Market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points annually 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 .
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we are still not out of the woods in terms of the coronavirus pandemic. So, we checked out this successful trader’s “corona catalyst plays“. Also, Europe is set to become the world’s largest cannabis market, so we checked out this European marijuana stock pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s check out the latest hedge fund action encompassing Mylan N.V. (NASDAQ:MYL).
How have hedgies been trading Mylan N.V. (NASDAQ:MYL)?
Heading into the second quarter of 2020, a total of 49 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the fourth quarter of 2019. The graph below displays the number of hedge funds with bullish position in MYL over the last 18 quarters. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
The largest stake in Mylan N.V. (NASDAQ:MYL) was held by Pzena Investment Management, which reported holding $291.5 million worth of stock at the end of September. It was followed by Deerfield Management with a $181.2 million position. Other investors bullish on the company included Paulson & Co, AQR Capital Management, and Slate Path Capital. In terms of the portfolio weights assigned to each position Slate Path Capital allocated the biggest weight to Mylan N.V. (NASDAQ:MYL), around 12.33% of its 13F portfolio. Courage Capital is also relatively very bullish on the stock, setting aside 11.45 percent of its 13F equity portfolio to MYL.
As aggregate interest increased, some big names were breaking ground themselves. Slate Path Capital, managed by David Greenspan, established the biggest position in Mylan N.V. (NASDAQ:MYL). Slate Path Capital had $160.8 million invested in the company at the end of the quarter. David Cohen and Harold Levy’s Iridian Asset Management also initiated a $37.6 million position during the quarter. The following funds were also among the new MYL investors: James Morrow’s Callodine Capital Management, Michael Rockefeller and KarláKroeker’s Woodline Partners, and Louis Bacon’s Moore Global Investments.
Let’s go over hedge fund activity in other stocks similar to Mylan N.V. (NASDAQ:MYL). We will take a look at InterContinental Hotels Group PLC (NYSE:IHG), Brookfield Property Partners LP (NASDAQ:BPY), Bilibili Inc. (NASDAQ:BILI), and United Rentals, Inc. (NYSE:URI). This group of stocks’ market values match MYL’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $384 million. That figure was $1470 million in MYL’s case. United Rentals, Inc. (NYSE:URI) is the most popular stock in this table. On the other hand InterContinental Hotels Group PLC (NYSE:IHG) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Mylan N.V. (NASDAQ:MYL) is more popular among hedge funds. 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 7.9% in 2020 through May 22nd and still beat the market by 15.6 percentage points. Unfortunately MYL wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on MYL were disappointed as the stock returned 4.9% during the second quarter (through May 22nd) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Disclosure: None. This article was originally published at Insider Monkey.