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Is Cypress Semiconductor Corporation (CY) A Good Stock To Buy According To Hedgies?

Insider Monkey finished processing more than 700 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of December 31st, 2018. What do these smart investors think about Cypress Semiconductor Corporation (NASDAQ:CY)?

Cypress Semiconductor Corporation (NASDAQ:CY) investors should be aware of a decrease in hedge fund sentiment of late. CY was in 23 hedge funds’ portfolios at the end of December. There were 24 hedge funds in our database with CY holdings at the end of the previous quarter. Our calculations also showed that CY isn’t among the 30 most popular stocks among hedge funds.

In the eyes of most traders, hedge funds are perceived as slow, outdated investment vehicles of the past. While there are greater than 8000 funds trading at the moment, Our experts hone in on the masters of this group, about 750 funds. These investment experts have their hands on the majority of the hedge fund industry’s total asset base, and by watching their first-class stock picks, Insider Monkey has revealed various investment strategies that have historically outrun the market. Insider Monkey’s flagship hedge fund strategy surpassed the S&P 500 index by nearly 5 percentage points per annum 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 27.5% since February 2017 (through March 12th) even though the market was up nearly 25% during the same period. We just shared a list of 6 short targets in our latest quarterly update and they are already down an average of 6% in less than a month.

Mario Gabelli

Let’s take a look at the latest hedge fund action regarding Cypress Semiconductor Corporation (NASDAQ:CY).

How have hedgies been trading Cypress Semiconductor Corporation (NASDAQ:CY)?

Heading into the first quarter of 2019, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of -4% from the second quarter of 2018. On the other hand, there were a total of 24 hedge funds with a bullish position in CY a year ago. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).

No of Hedge Funds with CY Positions

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Alyeska Investment Group, managed by Anand Parekh, holds the largest position in Cypress Semiconductor Corporation (NASDAQ:CY). Alyeska Investment Group has a $51.5 million position in the stock, comprising 0.8% of its 13F portfolio. Coming in second is Millennium Management, led by Israel Englander, holding a $36.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions contain Mario Gabelli’s GAMCO Investors, Amy Minella’s Cardinal Capital and Peter Muller’s PDT Partners.

Seeing as Cypress Semiconductor Corporation (NASDAQ:CY) has experienced a decline in interest from hedge fund managers, logic holds that there is a sect of money managers that slashed their positions entirely in the third quarter. It’s worth mentioning that Phill Gross and Robert Atchinson’s Adage Capital Management dropped the biggest stake of the 700 funds watched by Insider Monkey, comprising about $7.2 million in stock. Joe DiMenna’s fund, ZWEIG DIMENNA PARTNERS, also cut its stock, about $4.1 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 1 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cypress Semiconductor Corporation (NASDAQ:CY) but similarly valued. These stocks are Huntsman Corporation (NYSE:HUN), Woodward Inc (NASDAQ:WWD), Alkermes Plc (NASDAQ:ALKS), and Proofpoint Inc (NASDAQ:PFPT). This group of stocks’ market values resemble CY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HUN 26 464407 -5
WWD 14 193689 0
ALKS 19 175362 3
PFPT 27 501166 2
Average 21.5 333656 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $334 million. That figure was $220 million in CY’s case. Proofpoint Inc (NASDAQ:PFPT) is the most popular stock in this table. On the other hand Woodward Inc (NASDAQ:WWD) is the least popular one with only 14 bullish hedge fund positions. Cypress Semiconductor Corporation (NASDAQ:CY) 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 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Hedge funds were also right about betting on CY as the stock returned 27.9% and outperformed the market as well.

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

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