Where Do Hedge Funds Stand On ORIX Corporation (IX)?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 817 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about ORIX Corporation (NYSE:IX) in this article.

ORIX Corporation (NYSE:IX) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 4 hedge funds’ portfolios at the end of September. Our calculations also showed that IX 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). At the end of this article we will also compare IX to other stocks including MPLX LP (NYSE:MPLX), StoneCo Ltd. (NASDAQ:STNE), and Trip.com Group Limited (NASDAQ:TCOM) to get a better sense of its popularity.

Video: Watch our video about the top 5 most popular hedge fund stocks.

In the financial world there are many formulas investors put to use to appraise stocks. Some of the most innovative formulas are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the top picks of the best fund managers can outclass the broader indices by a significant amount (see the details here).

John Zaro of Bourgeon Capital

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world 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. With all of this in mind let’s take a glance at the latest hedge fund action regarding ORIX Corporation (NYSE:IX).

What does smart money think about ORIX Corporation (NYSE:IX)?

At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter of 2020. Below, you can check out the change in hedge fund sentiment towards IX over the last 21 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, D E Shaw, managed by D. E. Shaw, holds the largest position in ORIX Corporation (NYSE:IX). D E Shaw has a $2.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot of Renaissance Technologies, with a $1.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish comprise Ken Fisher’s Fisher Asset Management, John Zaro’s Bourgeon Capital and . In terms of the portfolio weights assigned to each position D E Shaw allocated the biggest weight to ORIX Corporation (NYSE:IX), around 0.0027% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, designating 0.0012 percent of its 13F equity portfolio to IX.

Seeing as ORIX Corporation (NYSE:IX) has experienced a decline in interest from hedge fund managers, it’s safe to say that there exists a select few fund managers that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group sold off the biggest position of all the hedgies tracked by Insider Monkey, valued at about $0.5 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $0.3 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to ORIX Corporation (NYSE:IX). These stocks are MPLX LP (NYSE:MPLX), StoneCo Ltd. (NASDAQ:STNE), Trip.com Group Limited (NASDAQ:TCOM), Northern Trust Corporation (NASDAQ:NTRS), Cheniere Energy Partners LP (NYSE:CQP), TransUnion (NYSE:TRU), and International Paper Company (NYSE:IP). This group of stocks’ market values resemble IX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MPLX 14 91155 1
STNE 38 2294511 3
TCOM 30 1525963 1
NTRS 28 272255 -7
CQP 3 8628 0
TRU 47 1684887 0
IP 32 199317 3
Average 27.4 868102 0.1

View table here if you experience formatting issues.

As you can see these stocks had an average of 27.4 hedge funds with bullish positions and the average amount invested in these stocks was $868 million. That figure was $4 million in IX’s case. TransUnion (NYSE:TRU) is the most popular stock in this table. On the other hand Cheniere Energy Partners LP (NYSE:CQP) is the least popular one with only 3 bullish hedge fund positions. ORIX Corporation (NYSE:IX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for IX is 23.3. 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 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on IX as the stock returned 24.6% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.

Follow O R I X Corp (NYSE:IX)

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Disclosure: None. This article was originally published at Insider Monkey.