The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards 10x Genomics, Inc. (NASDAQ:TXG).
Is TXG a good stock to buy? 10x Genomics, Inc. (NASDAQ:TXG) has experienced an increase in support from the world’s most elite money managers recently. 10x Genomics, Inc. (NASDAQ:TXG) was in 31 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistic is 20. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that TXG isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 15 best blue chip stocks to buy to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. With all of this in mind let’s analyze the fresh hedge fund action surrounding 10x Genomics, Inc. (NASDAQ:TXG).
Do Hedge Funds Think TXG Is A Good Stock To Buy Now?
At the end of September, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of 63% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TXG over the last 21 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Joel Ramin’s 12 West Capital Management has the most valuable position in 10x Genomics, Inc. (NASDAQ:TXG), worth close to $239.6 million, accounting for 11.7% of its total 13F portfolio. On 12 West Capital Management’s heels is Jonathan Soros of JS Capital, with a $75.6 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that hold long positions consist of Renaissance Technologies, D. E. Shaw’s D E Shaw and Dan Loeb’s Third Point. In terms of the portfolio weights assigned to each position 12 West Capital Management allocated the biggest weight to 10x Genomics, Inc. (NASDAQ:TXG), around 11.66% of its 13F portfolio. JS Capital is also relatively very bullish on the stock, earmarking 3.91 percent of its 13F equity portfolio to TXG.
As one would reasonably expect, some big names have jumped into 10x Genomics, Inc. (NASDAQ:TXG) headfirst. D E Shaw, managed by D. E. Shaw, created the most valuable position in 10x Genomics, Inc. (NASDAQ:TXG). D E Shaw had $17.7 million invested in the company at the end of the quarter. Dan Loeb’s Third Point also made a $15.4 million investment in the stock during the quarter. The following funds were also among the new TXG investors: Donald Sussman’s Paloma Partners, Matthew L Pinz’s Pinz Capital, and Israel Englander’s Millennium Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as 10x Genomics, Inc. (NASDAQ:TXG) but similarly valued. We will take a look at Masimo Corporation (NASDAQ:MASI), Avantor, Inc. (NYSE:AVTR), Telefonica Brasil SA (NYSE:VIV), Expedia Group Inc (NASDAQ:EXPE), PPD, Inc. (NASDAQ:PPD), Alliant Energy Corporation (NASDAQ:LNT), and Huazhu Group Limited (NASDAQ:HTHT). This group of stocks’ market values are closest to TXG’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 34.9 hedge funds with bullish positions and the average amount invested in these stocks was $1050 million. That figure was $527 million in TXG’s case. Expedia Group Inc (NASDAQ:EXPE) is the most popular stock in this table. On the other hand Telefonica Brasil SA (NYSE:VIV) is the least popular one with only 13 bullish hedge fund positions. 10x Genomics, Inc. (NASDAQ:TXG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TXG is 57.6. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 33.3% in 2020 through December 18th and still beat the market by 16.4 percentage points. A small number of hedge funds were also right about betting on TXG as the stock returned 22.6% since the end of the third quarter (through 12/18) and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.