The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Clarivate Plc (NYSE:CLVT).
Is CLVT a good stock to buy now? Money managers were turning less bullish. The number of bullish hedge fund bets dropped by 9 in recent months. Clarivate Plc (NYSE:CLVT) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic is 45. Our calculations also showed that CLVT isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
David Blood of Generation Investment Management
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 take a peek at the recent hedge fund action encompassing Clarivate Plc (NYSE:CLVT).
Do Hedge Funds Think CLVT Is A Good Stock To Buy Now?
At Q3’s end, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -22% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CLVT over the last 25 quarters. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
Among these funds, Leonard Green & Partners held the most valuable stake in Clarivate Plc (NYSE:CLVT), which was worth $2555 million at the end of the third quarter. On the second spot was Select Equity Group which amassed $1157.1 million worth of shares. Generation Investment Management, 40 North Management, and Two Creeks Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Leonard Green & Partners allocated the biggest weight to Clarivate Plc (NYSE:CLVT), around 19.75% of its 13F portfolio. Antipodean Advisors is also relatively very bullish on the stock, dishing out 6.98 percent of its 13F equity portfolio to CLVT.
Judging by the fact that Clarivate Plc (NYSE:CLVT) has faced declining sentiment from the smart money, it’s safe to say that there is a sect of hedgies who were dropping their full holdings by the end of the third quarter. Interestingly, Jeffrey Altman’s Owl Creek Asset Management said goodbye to the biggest position of the “upper crust” of funds watched by Insider Monkey, worth close to $40.2 million in stock, and George Soros’s Soros Fund Management was right behind this move, as the fund dumped about $39.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 9 funds by the end of the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Clarivate Plc (NYSE:CLVT) but similarly valued. We will take a look at Alliant Energy Corporation (NYSE:LNT), Zendesk Inc (NYSE:ZEN), News Corp (NASDAQ:NWSA), Loews Corporation (NYSE:L), Solaredge Technologies Inc (NASDAQ:SEDG), Nordson Corporation (NASDAQ:NDSN), and W.P. Carey Inc. (NYSE:WPC). This group of stocks’ market valuations resemble CLVT’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LNT | 17 | 76693 | 1 |
| ZEN | 53 | 1557704 | 1 |
| NWSA | 34 | 737689 | -3 |
| L | 27 | 175121 | -1 |
| SEDG | 33 | 594467 | -4 |
| NDSN | 29 | 310857 | -5 |
| WPC | 24 | 142763 | -5 |
| Average | 31 | 513613 | -2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $514 million. That figure was $4724 million in CLVT’s case. Zendesk Inc (NYSE:ZEN) is the most popular stock in this table. On the other hand Alliant Energy Corporation (NYSE:LNT) is the least popular one with only 17 bullish hedge fund positions. Clarivate Plc (NYSE:CLVT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CLVT is 38.2. 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. 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 still beat the market by 5.6 percentage points. Hedge funds were also right about betting on CLVT, though not to the same extent, as the stock returned 6.6% since Q3 (through November 30th) and outperformed the market as well.
Follow Clarivate Plc (NYSE:CLVT)
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Disclosure: None. This article was originally published at Insider Monkey.
