Is Commscope Holding Company Inc (NASDAQ:COMM) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Is Commscope Holding Company Inc (NASDAQ:COMM) a safe investment now? Prominent investors were getting more optimistic. The number of bullish hedge fund bets inched up by 4 lately. Commscope Holding Company Inc (NASDAQ:COMM) was in 36 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 52. Our calculations also showed that COMM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 32 hedge funds in our database with COMM holdings at the end of March.
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Steven Tananbaum of GoldenTree Asset Management
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Do Hedge Funds Think COMM Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 36 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from the first quarter of 2020. On the other hand, there were a total of 32 hedge funds with a bullish position in COMM a year ago. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
The largest stake in Commscope Holding Company Inc (NASDAQ:COMM) was held by FPR Partners, which reported holding $350.6 million worth of stock at the end of June. It was followed by Lyrical Asset Management with a $181.5 million position. Other investors bullish on the company included GoldenTree Asset Management, Adage Capital Management, and Empyrean Capital Partners. In terms of the portfolio weights assigned to each position FPR Partners allocated the biggest weight to Commscope Holding Company Inc (NASDAQ:COMM), around 9.04% of its 13F portfolio. Shelter Haven Capital Management is also relatively very bullish on the stock, designating 6.5 percent of its 13F equity portfolio to COMM.
As one would reasonably expect, key hedge funds have jumped into Commscope Holding Company Inc (NASDAQ:COMM) headfirst. Newbrook Capital Advisors, managed by Robert Boucai, initiated the biggest position in Commscope Holding Company Inc (NASDAQ:COMM). Newbrook Capital Advisors had $38.9 million invested in the company at the end of the quarter. Suraj Parkash Chopra’s Force Hill Capital Management also initiated a $16.5 million position during the quarter. The following funds were also among the new COMM investors: Joe DiMenna’s ZWEIG DIMENNA PARTNERS, Dmitry Balyasny’s Balyasny Asset Management, and Ben Gambill’s Tiger Eye Capital.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Commscope Holding Company Inc (NASDAQ:COMM) but similarly valued. These stocks are Ryman Hospitality Properties, Inc. (NYSE:RHP), Certara, Inc. (NASDAQ:CERT), Advanced Energy Industries, Inc. (NASDAQ:AEIS), Resideo Technologies, Inc. (NYSE:REZI), Wintrust Financial Corporation (NASDAQ:WTFC), Healthcare Realty Trust Inc (NYSE:HR), and New Relic Inc (NYSE:NEWR). This group of stocks’ market values resemble COMM’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RHP | 22 | 342352 | 0 |
| CERT | 7 | 124316 | -5 |
| AEIS | 17 | 74181 | -6 |
| REZI | 28 | 682954 | 1 |
| WTFC | 18 | 222826 | -1 |
| HR | 19 | 186785 | -1 |
| NEWR | 29 | 1281799 | 2 |
| Average | 20 | 416459 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $416 million. That figure was $1025 million in COMM’s case. New Relic Inc (NYSE:NEWR) is the most popular stock in this table. On the other hand Certara, Inc. (NASDAQ:CERT) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Commscope Holding Company Inc (NASDAQ:COMM) is more popular among hedge funds. Our overall hedge fund sentiment score for COMM is 79.8. 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 21.8% in 2021 through October 11th and still beat the market by 4.4 percentage points. Unfortunately COMM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on COMM were disappointed as the stock returned -45.3% since the end of the second quarter (through 10/11) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
