Is Citrix Systems, Inc. (NASDAQ:CTXS) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Citrix Systems, Inc. (NASDAQ:CTXS) investors should pay attention to an increase in support from the world’s most elite money managers of late. CTXS was in 37 hedge funds’ portfolios at the end of the third quarter of 2018. There were 32 hedge funds in our database with CTXS positions at the end of the previous quarter. Our calculations also showed that ctxs isn’t among the 30 most popular stocks among hedge funds.
In the eyes of most shareholders, hedge funds are assumed to be underperforming, outdated financial tools of the past. While there are over 8,000 funds trading today, Our experts hone in on the aristocrats of this club, around 700 funds. It is estimated that this group of investors direct most of the smart money’s total asset base, and by observing their unrivaled stock picks, Insider Monkey has spotted a few investment strategies that have historically beaten Mr. Market. Insider Monkey’s flagship hedge fund strategy outpaced the S&P 500 index by 6 percentage points annually since its inception in May 2014 through early November 2018. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 24% since February 2017 (through December 3rd) even though the market was up nearly 23% during the same period. We just shared a list of 11 short targets in our latest quarterly update.
We’re going to take a gander at the key hedge fund action regarding Citrix Systems, Inc. (NASDAQ:CTXS).
How have hedgies been trading Citrix Systems, Inc. (NASDAQ:CTXS)?
At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey were long this stock, a change of 16% from the previous quarter. On the other hand, there were a total of 35 hedge funds with a bullish position in CTXS at the beginning of this year. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Elliott Management held the most valuable stake in Citrix Systems, Inc. (NASDAQ:CTXS), which was worth $788.2 million at the end of the third quarter. On the second spot was GLG Partners which amassed $211.1 million worth of shares. Moreover, Farallon Capital, Arrowstreet Capital, and D E Shaw were also bullish on Citrix Systems, Inc. (NASDAQ:CTXS), allocating a large percentage of their portfolios to this stock.
As one would reasonably expect, specific money managers have jumped into Citrix Systems, Inc. (NASDAQ:CTXS) headfirst. Hudson Bay Capital Management, managed by Sander Gerber, created the biggest position in Citrix Systems, Inc. (NASDAQ:CTXS). Hudson Bay Capital Management had $8.2 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also initiated a $5.5 million position during the quarter. The other funds with new positions in the stock are Ray Dalio’s Bridgewater Associates, Ian Simm’s Impax Asset Management, and George Zweig, Shane Haas and Ravi Chander’s Signition LP.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Citrix Systems, Inc. (NASDAQ:CTXS) but similarly valued. These stocks are Noble Energy, Inc. (NYSE:NBL), MGM Resorts International (NYSE:MGM), Waters Corporation (NYSE:WAT), and CBRE Group, Inc. (NYSE:CBRE). This group of stocks’ market valuations resemble CTXS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NBL | 26 | 994521 | -6 |
| MGM | 49 | 2007648 | -2 |
| WAT | 23 | 837166 | -2 |
| CBRE | 29 | 1780804 | 5 |
| Average | 31.75 | 1405035 | -1.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.41 billion. That figure was $2.46 billion in CTXS’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand Waters Corporation (NYSE:WAT) is the least popular one with only 23 bullish hedge fund positions. Citrix Systems, Inc. (NASDAQ:CTXS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MGM might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
