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’s What Hedge Funds Think About Novartis AG (NVS)

Before we spend countless hours researching a company, we’d like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Novartis AG (NYSE:NVS).

Is Novartis AG (NYSE:NVS) a buy here? Prominent investors are becoming less confident. The number of long hedge fund bets fell by 1 in recent months. Our calculations also showed that nvs isn’t among the 30 most popular stocks among hedge funds.

In the financial world there are dozens of methods stock market investors have at their disposal to analyze their holdings. Some of the most useful methods are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top investment managers can beat the market by a superb amount (see the details here).

SAC CAPITAL ADVISORS

Let’s review the fresh hedge fund action regarding Novartis AG (NYSE:NVS).

How have hedgies been trading Novartis AG (NYSE:NVS)?

Heading into the second quarter of 2019, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from one quarter earlier. On the other hand, there were a total of 27 hedge funds with a bullish position in NVS a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with NVS Positions

Among these funds, Fisher Asset Management held the most valuable stake in Novartis AG (NYSE:NVS), which was worth $653 million at the end of the first quarter. On the second spot was Arrowstreet Capital which amassed $450.1 million worth of shares. Moreover, Renaissance Technologies, Point72 Asset Management, and Millennium Management were also bullish on Novartis AG (NYSE:NVS), allocating a large percentage of their portfolios to this stock.

Due to the fact that Novartis AG (NYSE:NVS) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds who sold off their full holdings in the third quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management dropped the biggest position of all the hedgies watched by Insider Monkey, valued at close to $20.2 million in stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, also dropped its stock, about $4.3 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 1 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Novartis AG (NYSE:NVS). These stocks are Wells Fargo & Company (NYSE:WFC), The Home Depot, Inc. (NYSE:HD), The Boeing Company (NYSE:BA), and Merck & Co., Inc. (NYSE:MRK). This group of stocks’ market caps match NVS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WFC 73 25750715 -4
HD 58 3544213 0
BA 71 4346311 4
MRK 64 4602295 -4
Average 66.5 9560884 -1

View table here if you experience formatting issues.

As you can see these stocks had an average of 66.5 hedge funds with bullish positions and the average amount invested in these stocks was $9561 million. That figure was $1984 million in NVS’s case. Wells Fargo & Company (NYSE:WFC) is the most popular stock in this table. On the other hand The Home Depot, Inc. (NYSE:HD) is the least popular one with only 58 bullish hedge fund positions. Compared to these stocks Novartis AG (NYSE:NVS) is even less popular than HD. 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. A small number of hedge funds were also right about betting on NVS, though not to the same extent, as the stock returned -0.4% during the same time frame 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...