Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here is What Hedge Funds Think About The Williams Companies (WMB)

The Williams Companies, Inc. (NYSE:WMB) was in 39 hedge funds’ portfolios at the end of December. WMB investors should pay attention to a decrease in hedge fund sentiment recently. There were 43 hedge funds in our database with WMB holdings at the end of the previous quarter. Our calculations also showed that WMB isn’t among the 30 most popular stocks among hedge funds.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 32 percentage points since May 2014 through March 12, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 27.5% through March 12, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

GLENVIEW CAPITAL

We’re going to take a peek at the key hedge fund action surrounding The Williams Companies, Inc. (NYSE:WMB).

What does the smart money think about The Williams Companies, Inc. (NYSE:WMB)?

Heading into the first quarter of 2019, a total of 39 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards WMB over the last 14 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

WMB_mar2019

More specifically, King Street Capital was the largest shareholder of The Williams Companies, Inc. (NYSE:WMB), with a stake worth $331.9 million reported as of the end of September. Trailing King Street Capital was Steadfast Capital Management, which amassed a stake valued at $307 million. Glenview Capital, Millennium Management, and Canyon Capital Advisors were also very fond of the stock, giving the stock large weights in their portfolios.

Due to the fact that The Williams Companies, Inc. (NYSE:WMB) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds that decided to sell off their full holdings in the third quarter. At the top of the heap, Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, worth close to $91 million in stock. David Tepper’s fund, Appaloosa Management LP, also sold off its stock, about $28.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as The Williams Companies, Inc. (NYSE:WMB) but similarly valued. We will take a look at Public Service Enterprise Group Incorporated (NYSE:PEG), Takeda Pharmaceutical Company Limited (NYSE:TAK), Southwest Airlines Co. (NYSE:LUV), and Welltower Inc. (NYSE:WELL). This group of stocks’ market values are closest to WMB’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PEG 30 1076546 3
TAK 10 97263 10
LUV 40 3809426 -1
WELL 17 483630 -1
Average 24.25 1366716 2.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 24.25 hedge funds with bullish positions and the average amount invested in these stocks was $1367 million. That figure was $1574 million in WMB’s case. Southwest Airlines Co. (NYSE:LUV) is the most popular stock in this table. On the other hand Takeda Pharmaceutical Company Limited (NYSE:TAK) is the least popular one with only 10 bullish hedge fund positions. The Williams Companies, Inc. (NYSE:WMB) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 15 most popular stocks among hedge funds returned 19.7% through March 15th and outperformed the S&P 500 ETF (SPY) by 6.6 percentage points. Hedge funds were also right about betting on WMB as the stock returned 26.7% and outperformed the market as well.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...