Is TE Connectivity Ltd. (NYSE:TEL) 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.
TE Connectivity Ltd. (NYSE:TEL) was in 41 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 44. TEL has experienced an increase in hedge fund interest of late. There were 39 hedge funds in our database with TEL holdings at the end of June. Our calculations also showed that TEL isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let’s go over the fresh hedge fund action regarding TE Connectivity Ltd. (NYSE:TEL).
Do Hedge Funds Think TEL Is A Good Stock To Buy Now?
At the end of September, a total of 41 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TEL over the last 25 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
The largest stake in TE Connectivity Ltd. (NYSE:TEL) was held by Generation Investment Management, which reported holding $626.7 million worth of stock at the end of September. It was followed by First Pacific Advisors LLC with a $378.2 million position. Other investors bullish on the company included Impax Asset Management, Third Point, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position LFL Advisers allocated the biggest weight to TE Connectivity Ltd. (NYSE:TEL), around 14.23% of its 13F portfolio. First Pacific Advisors LLC is also relatively very bullish on the stock, dishing out 4.9 percent of its 13F equity portfolio to TEL.
Consequently, some big names were breaking ground themselves. Renaissance Technologies, created the most valuable position in TE Connectivity Ltd. (NYSE:TEL). Renaissance Technologies had $46 million invested in the company at the end of the quarter. Mikal Patel’s Oribel Capital Management also made a $13.6 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, Dmitry Balyasny’s Balyasny Asset Management, and Qing Li’s Sciencast Management.
Let’s now take a look at hedge fund activity in other stocks similar to TE Connectivity Ltd. (NYSE:TEL). We will take a look at Carrier Global Corporation (NYSE:CARR), The Bank of New York Mellon Corporation (NYSE:BK), T. Rowe Price Group, Inc. (NASDAQ:TROW), Kimberly Clark Corporation (NYSE:KMB), L3Harris Technologies, Inc. (NASDAQ:LHX), Veeva Systems Inc (NYSE:VEEV), and Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA). This group of stocks’ market caps are closest to TEL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CARR | 46 | 1324758 | 0 |
| BK | 46 | 4657475 | -6 |
| TROW | 35 | 471726 | 11 |
| KMB | 28 | 410445 | -9 |
| LHX | 29 | 492448 | -13 |
| VEEV | 44 | 1631737 | 0 |
| BBVA | 10 | 310429 | 1 |
| Average | 34 | 1328431 | -2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $1328 million. That figure was $2188 million in TEL’s case. Carrier Global Corporation (NYSE:CARR) is the most popular stock in this table. On the other hand Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) is the least popular one with only 10 bullish hedge fund positions. TE Connectivity Ltd. (NYSE:TEL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TEL is 78. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on TEL as the stock returned 12.5% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Te Connectivity Ltd. (NYSE:TEL)
Follow Te Connectivity Ltd. (NYSE:TEL)
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Disclosure: None. This article was originally published at Insider Monkey.
