Xperi Holding Corporation (XPER) Fell Out Of Favor With Hedge Funds

The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Xperi Holding Corporation (NASDAQ:XPER).

Xperi Holding Corporation (NASDAQ:XPER) was in 21 hedge funds’ portfolios at the end of March. The all time high for this statistic is 23. XPER has seen a decrease in hedge fund interest in recent months. There were 22 hedge funds in our database with XPER holdings at the end of December. Our calculations also showed that XPER isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

To the average investor there are plenty of gauges stock traders use to size up their holdings. Two of the most underrated gauges are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outpace their index-focused peers by a superb margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Joel Greenblatt Gotham Asset Management

Joel Greenblatt of Gotham Asset Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s review the recent hedge fund action surrounding Xperi Holding Corporation (NASDAQ:XPER).

Do Hedge Funds Think XPER Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from one quarter earlier. By comparison, 20 hedge funds held shares or bullish call options in XPER a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is XPER A Good Stock To Buy?

Among these funds, Renaissance Technologies held the most valuable stake in Xperi Holding Corporation (NASDAQ:XPER), which was worth $52.5 million at the end of the fourth quarter. On the second spot was Rubric Capital Management which amassed $46.5 million worth of shares. Nokomis Capital, Arrowstreet Capital, and Clearline Capital 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 0 allocated the biggest weight to Xperi Holding Corporation (NASDAQ:XPER), around 5.53% of its 13F portfolio. 0 is also relatively very bullish on the stock, dishing out 5.5 percent of its 13F equity portfolio to XPER.

Because Xperi Holding Corporation (NASDAQ:XPER) has faced a decline in interest from the aggregate hedge fund industry, logic holds that there is a sect of money managers who sold off their entire stakes in the first quarter. At the top of the heap, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the biggest position of all the hedgies monitored by Insider Monkey, comprising about $1.6 million in stock. D. E. Shaw’s fund, D E Shaw, also dropped its stock, about $1.5 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds in the first quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Xperi Holding Corporation (NASDAQ:XPER). These stocks are South Jersey Industries Inc (NYSE:SJI), Nuvation Bio Inc. (NYSE:NUVB), Sally Beauty Holdings, Inc. (NYSE:SBH), Globalstar, Inc. (PINK:GSAT), Strategic Education Inc (NASDAQ:STRA), BTRS Holdings Inc. (NASDAQ:BTRS), and Bionano Genomics, Inc. (NASDAQ:BNGO). This group of stocks’ market caps resemble XPER’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SJI 32 482342 20
NUVB 30 543947 30
SBH 19 127433 -4
GSAT 10 163384 1
STRA 16 232233 1
BTRS 26 310999 26
BNGO 10 108374 5
Average 20.4 281245 11.3

View table here if you experience formatting issues.

As you can see these stocks had an average of 20.4 hedge funds with bullish positions and the average amount invested in these stocks was $281 million. That figure was $156 million in XPER’s case. South Jersey Industries Inc (NYSE:SJI) is the most popular stock in this table. On the other hand Globalstar, Inc. (PINK:GSAT) is the least popular one with only 10 bullish hedge fund positions. Xperi Holding Corporation (NASDAQ:XPER) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for XPER is 56.4. 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 23.8% in 2021 through July 16th and beat the market again by 7.7 percentage points. Unfortunately XPER wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on XPER were disappointed as the stock returned -9% since the end of March (through 7/16) 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 many of these stocks already outperformed the market since 2019.

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