Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. What do these smart investors think about Koninklijke Philips NV (ADR) (NYSE:PHG)?
Koninklijke Philips NV (ADR) (NYSE:PHG) shareholders have witnessed a decrease in enthusiasm from smart money lately. PHG was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. There were 14 hedge funds in our database with PHG positions at the end of the previous quarter. At the end of this article we will also compare PHG to other stocks including Tyson Foods, Inc. (NYSE:TSN), CRH PLC (ADR) (NYSE:CRH), and Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Hedge fund activity in Koninklijke Philips NV (ADR) (NYSE:PHG)
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 29% from one quarter earlier. On the other hand, there were a total of 10 hedge funds with a bullish position in PHG at the beginning of this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the biggest position in Koninklijke Philips NV (ADR) (NYSE:PHG), worth close to $77.8 million. The second largest stake is held by Renaissance Technologies, one of the largest hedge funds in the world, which holds a $51 million position. Some other professional money managers with similar optimism encompass John A. Levin’s Levin Capital Strategies, Michael Castor’s Sio Capital and Ed Beddow and William Tichy’s Beddow Capital Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Since Koninklijke Philips NV (ADR) (NYSE:PHG) has faced a decline in interest from hedge fund managers, it’s easy to see that there was a specific group of hedgies that elected to cut their positions entirely in the third quarter. Interestingly, Mason Hawkins’s Southeastern Asset Management sold off the biggest investment of all the investors watched by Insider Monkey, worth close to $225.8 million in stock, and Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund cut about $3.1 million worth of shares.
Let’s check out hedge fund activity in other stocks similar to Koninklijke Philips NV (ADR) (NYSE:PHG). These stocks are Tyson Foods, Inc. (NYSE:TSN), CRH PLC (ADR) (NYSE:CRH), Royal Bank of Scotland Group plc (ADR) (NYSE:RBS), and Credit Suisse Group AG (ADR) (NYSE:CS). This group of stocks’ market valuations are closest to PHG’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $465 million. That figure was $200 million in PHG’s case. Tyson Foods, Inc. (NYSE:TSN) is the most popular stock in this table. On the other hand CRH PLC (ADR) (NYSE:CRH) is the least popular one with only 8 bullish hedge fund positions. Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TSN might be a better candidate to consider taking a long position in.