The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Qorvo Inc (NASDAQ:QRVO) and determine whether the smart money was really smart about this stock.
Qorvo Inc (NASDAQ:QRVO) shareholders have witnessed an increase in enthusiasm from smart money of late. Qorvo Inc (NASDAQ:QRVO) was in 44 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 51. There were 40 hedge funds in our database with QRVO holdings at the end of June. Our calculations also showed that QRVO 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 take a look at the latest hedge fund action surrounding Qorvo Inc (NASDAQ:QRVO).
Do Hedge Funds Think QRVO Is A Good Stock To Buy Now?
At Q3’s end, a total of 44 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in QRVO over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Baupost Group held the most valuable stake in Qorvo Inc (NASDAQ:QRVO), which was worth $850.1 million at the end of the third quarter. On the second spot was Select Equity Group which amassed $203.5 million worth of shares. Fisher Asset Management, Iridian Asset Management, and AQR Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Panview Capital allocated the biggest weight to Qorvo Inc (NASDAQ:QRVO), around 7.94% of its 13F portfolio. Baupost Group is also relatively very bullish on the stock, setting aside 7.81 percent of its 13F equity portfolio to QRVO.
Consequently, specific money managers have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the biggest position in Qorvo Inc (NASDAQ:QRVO). Balyasny Asset Management had $28.8 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also initiated a $4.4 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Richard Mashaal’s Rima Senvest Management, and Greg Eisner’s Engineers Gate Manager.
Let’s check out hedge fund activity in other stocks similar to Qorvo Inc (NASDAQ:QRVO). We will take a look at Cincinnati Financial Corporation (NASDAQ:CINF), Ally Financial Inc (NYSE:ALLY), Duke Realty Corporation (NYSE:DRE), KB Financial Group, Inc. (NYSE:KB), Healthpeak Properties, Inc. (NYSE:PEAK), Teradyne, Inc. (NYSE:TER), and Lyft, Inc. (NASDAQ:LYFT). This group of stocks’ market values match QRVO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CINF | 20 | 661958 | -2 |
| ALLY | 57 | 2517368 | 3 |
| DRE | 13 | 67287 | -2 |
| KB | 8 | 21128 | 0 |
| PEAK | 20 | 202911 | -2 |
| TER | 42 | 1369839 | -2 |
| LYFT | 33 | 900001 | -10 |
| Average | 27.6 | 820070 | -2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.6 hedge funds with bullish positions and the average amount invested in these stocks was $820 million. That figure was $1951 million in QRVO’s case. Ally Financial Inc (NYSE:ALLY) is the most popular stock in this table. On the other hand KB Financial Group, Inc. (NYSE:KB) is the least popular one with only 8 bullish hedge fund positions. Qorvo Inc (NASDAQ:QRVO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for QRVO is 71.6. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately, QRVO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on QRVO were disappointed as the stock returned -17.9% since the end of September (through 1/31) 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 all of these stocks already outperformed the market since 2019.
Follow Qorvo Inc. (NASDAQ:QRVO)
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Disclosure: None. This article was originally published at Insider Monkey.
