The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we will take a closer look at United Parcel Service, Inc. (NYSE:UPS) from the perspective of those elite funds.
Is United Parcel Service, Inc. (NYSE:UPS) a healthy stock for your portfolio? It looks like hedge funds are turning bullish, since the number of long hedge fund bets rose by seven lately. However, the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Accenture Plc (NYSE:ACN), NIKE, Inc. (NYSE:NKE), and SAP AG (ADR) (NYSE:SAP) to gather more data points.
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.
Keeping this in mind, we’re going to take a peek at the new action surrounding United Parcel Service, Inc. (NYSE:UPS).
How are hedge funds trading United Parcel Service, Inc. (NYSE:UPS)?
At the end of the third quarter, 40 funds tracked by Insider Monkey were bullish on United Parcel Service, which represents an increase of 21% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Bill & Melinda Gates Foundation Trust, managed by Michael Larson, holds the biggest position in United Parcel Service, Inc. (NYSE:UPS). Bill & Melinda Gates Foundation Trust has a $494.9 million position in the stock, comprising 2.7% of its 13F portfolio. The second largest stake is held by Mike Masters’ Masters Capital Management, with a $166.3 million call position; 3.3% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism contain Phill Gross and Robert Atchinson’s Adage Capital Management and Ric Dillon’s Diamond Hill Capital.