We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do. However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, let’s examine the smart money sentiment towards Suncor Energy Inc. (NYSE:SU) and determine whether hedge funds skillfully traded this stock.
Is Suncor Energy Inc. (NYSE:SU) a buy here? The best stock pickers were getting less bullish. The number of long hedge fund bets were cut by 1 in recent months. Suncor Energy Inc. (NYSE:SU) was in 29 hedge funds’ portfolios at the end of June. The all time high for this statistics is 41. Our calculations also showed that SU isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks). There were 30 hedge funds in our database with SU positions at the end of the first quarter. Video: Watch our video about the top 5 most popular hedge fund stocks.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 56 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 34% through August 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Jonathan Barrett of Luminus Management
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, this “mom” trader turned $2000 into $2 million within 2 years. So, we are checking out her best trade idea of the month. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. 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 review the key hedge fund action surrounding Suncor Energy Inc. (NYSE:SU).
What have hedge funds been doing with Suncor Energy Inc. (NYSE:SU)?
Heading into the third quarter of 2020, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the previous quarter. By comparison, 32 hedge funds held shares or bullish call options in SU a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Berkshire Hathaway held the most valuable stake in Suncor Energy Inc. (NYSE:SU), which was worth $323.7 million at the end of the third quarter. On the second spot was Lyrical Asset Management which amassed $150.2 million worth of shares. D E Shaw, Luminus Management, and Locust Wood Capital Advisers 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 Luminus Management allocated the biggest weight to Suncor Energy Inc. (NYSE:SU), around 10.39% of its 13F portfolio. Lyrical Asset Management is also relatively very bullish on the stock, dishing out 2.96 percent of its 13F equity portfolio to SU.
Because Suncor Energy Inc. (NYSE:SU) has witnessed declining sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few funds that elected to cut their positions entirely in the second quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest stake of all the hedgies tracked by Insider Monkey, worth about $57.3 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund dropped about $10.9 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds in the second quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Suncor Energy Inc. (NYSE:SU) but similarly valued. These stocks are Sirius XM Holdings Inc (NASDAQ:SIRI), Cummins Inc. (NYSE:CMI), Schlumberger Limited. (NYSE:SLB), Johnson Controls International plc (NYSE:JCI), Fresenius Medical Care AG & Co. (NYSE:FMS), Willis Towers Watson Public Limited Company (NASDAQ:WLTW), and RingCentral Inc (NYSE:RNG). This group of stocks’ market caps are similar to SU’s market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SIRI,42,1136784,6 CMI,38,358670,4 SLB,53,932470,4 JCI,28,1099174,-9 FMS,6,11727,-4 WLTW,49,2288145,6 RNG,62,3647093,-5 Average,39.7,1353438,0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 39.7 hedge funds with bullish positions and the average amount invested in these stocks was $1353 million. That figure was $845 million in SU’s case. RingCentral Inc (NYSE:RNG) is the most popular stock in this table. On the other hand Fresenius Medical Care AG & Co. (NYSE:FMS) is the least popular one with only 6 bullish hedge fund positions. Suncor Energy Inc. (NYSE:SU) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SU is 45.8. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 23.8% in 2020 through September 14th and surpassed the market by 17.6 percentage points. Unfortunately SU wasn’t nearly as popular as these 10 stocks (hedge fund sentiment was quite bearish); SU investors were disappointed as the stock returned -19% since Q2 and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Get real-time email alerts: Follow Suncor Energy Inc New (NYSE:SU)
Disclosure: None. This article was originally published at Insider Monkey.
Steven Soderbergh Adds David Harbour, Noah Jupe, Brendan Fraser as Crime Drama ‘No Sudden Move’ Goes Back Into Production
HBO Max and Warner Bros. Pictures are back in production on Steven Soderbergh’s period crime drama “No Sudden Move,” with David Harbour, Noah Jupe and Brendan Fraser joining previously announced stars Don Cheadle and Benicio Del Toro.
The cast also includes Amy Seimetz, Jon Hamm, Ray Liotta, Kieran Culkin, Bill Duke, Frankie Shaw and Julia Fox. The script was written by Ed Solomon and Casey Silver is attached to produce.
The project was previously known as “Kill Switch.” Production is re-starting in Detroit, where the cast and crew will operate under “strict Covid-19 safety protocols” after shutting down pre-production in May, though George Clooney and Sebastian Stan are no longer in talks to appear in the film.
Set in 1955 in Detroit, “No Sudden Move” centers on a group of small-time criminals who are hired to steal what they think is a simple document. When their plan goes horribly wrong, their search for who hired them –- and for what ultimate purpose – weaves them through all echelons of the race-torn, rapidly changing city.
“The last time I shot a movie in Detroit with a great script and a great cast things worked out really well, so I’m very excited behind my mask right now,” said Soderbergh.
The project is part of the three-year deal Soderbergh signed in January with HBO and HBO Max. He previously teamed with HBO Max on the drama “Let Them All Talk,” starring Meryl Streep, Candice Bergen, Dianne Wiest, Lucas Hedges, and Gemma Chan.
“It’s a pleasure to begin production on another project with Steven Soderbergh, Casey Silver and Ed Solomon,” said Casey Bloys, chief content officer for HBO and HBO Max. “We have an incredible partner in Warner Bros. Pictures and an extraordinarily talented cast – we couldn’t be happier to bring No Sudden Move to HBO Max.”
Soderbergh was selected in April to head up the Directors Guild of America’s efforts to develop the industry-wife safety protocols that were announced Sept. 21 by the unions and studios.
“Steven is a prolific, forward-thinking director who has a two-decade history of making movies at Warner Bros. We look forward to continuing his legacy at WarnerMedia with his intense crime thriller,” said Toby Emmerich, chairman of Warner Bros. Pictures Group.
Solomon’s credits include “Men in Black,” “Charlie’s Angels,” “Now You See Me” and “Bill & Ted Face the Music,” which Soderbergh executive produced. Solomon and Soderbergh also teamed on HBO’s “Mosaic.”
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Hedge Funds Have Never Been This Bullish On Akebia Therapeutics Inc (AKBA)
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 823 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 June 30th, when the S&P 500 Index was trading around the 3100 level. Stocks kept going up since then. In this article we look at how hedge funds traded Akebia Therapeutics Inc (NASDAQ:AKBA) and determine whether the smart money was really smart about this stock.
Is Akebia Therapeutics Inc (NASDAQ:AKBA) ready to rally soon? Money managers were in a bullish mood. The number of bullish hedge fund positions rose by 7 recently. Akebia Therapeutics Inc (NASDAQ:AKBA) was in 25 hedge funds’ portfolios at the end of June. The all time high for this statistics is 24. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that AKBA isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks). There were 18 hedge funds in our database with AKBA positions at the end of the first quarter. Video: Watch our video about the top 5 most popular hedge fund stocks.
According to most stock holders, hedge funds are perceived as underperforming, old investment tools of the past. While there are greater than 8000 funds in operation at present, We hone in on the masters of this group, about 850 funds. It is estimated that this group of investors command bulk of all hedge funds’ total capital, and by observing their inimitable stock picks, Insider Monkey has figured out numerous investment strategies that have historically surpassed Mr. Market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 34% since February 2017 (through August 17th) even though the market was up 53% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
David Abrams of Abrams Capital Management
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. 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. 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 website to get excerpts of these letters in your inbox. With all of this in mind we’re going to review the key hedge fund action regarding Akebia Therapeutics Inc (NASDAQ:AKBA).
How are hedge funds trading Akebia Therapeutics Inc (NASDAQ:AKBA)?
At second quarter’s end, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 39% from the first quarter of 2020. By comparison, 14 hedge funds held shares or bullish call options in AKBA 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.
The largest stake in Akebia Therapeutics Inc (NASDAQ:AKBA) was held by Baupost Group, which reported holding $203.7 million worth of stock at the end of September. It was followed by Consonance Capital Management with a $95.5 million position. Other investors bullish on the company included Nantahala Capital Management, Abrams Capital Management, and Great Point Partners. In terms of the portfolio weights assigned to each position Consonance Capital Management allocated the biggest weight to Akebia Therapeutics Inc (NASDAQ:AKBA), around 5.72% of its 13F portfolio. Great Point Partners is also relatively very bullish on the stock, dishing out 3.81 percent of its 13F equity portfolio to AKBA.
As industrywide interest jumped, specific money managers were breaking ground themselves. Great Point Partners, managed by Jeffrey Jay and David Kroin, assembled the most outsized position in Akebia Therapeutics Inc (NASDAQ:AKBA). Great Point Partners had $47.7 million invested in the company at the end of the quarter. Arsani William’s Logos Capital also made a $16.3 million investment in the stock during the quarter. The other funds with brand new AKBA positions are Paul Marshall and Ian Wace’s Marshall Wace LLP, Doron Breen and Mori Arkin’s Sphera Global Healthcare Fund, and Renaissance Technologies.
Let’s check out hedge fund activity in other stocks similar to Akebia Therapeutics Inc (NASDAQ:AKBA). These stocks are American National Group, Inc. (NASDAQ:ANAT), Wolverine World Wide, Inc. (NYSE:WWW), Embotelladora Andina S.A. (NYSE:AKO), Alector, Inc. (NASDAQ:ALEC), Corcept Therapeutics Incorporated (NASDAQ:CORT), ServisFirst Bancshares, Inc. (NASDAQ:SFBS), and LexinFintech Holdings Ltd. (NASDAQ:LX). This group of stocks’ market valuations are similar to AKBA’s market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ANAT,10,36359,-4 WWW,17,75033,-5 AKO,2,11948,0 ALEC,29,382544,14 CORT,23,219577,2 SFBS,9,15227,-1 LX,14,75859,-3 Average,14.9,116650,0.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.9 hedge funds with bullish positions and the average amount invested in these stocks was $117 million. That figure was $618 million in AKBA’s case. Alector, Inc. (NASDAQ:ALEC) is the most popular stock in this table. On the other hand Embotelladora Andina S.A. (NYSE:AKO) is the least popular one with only 2 bullish hedge fund positions. Akebia Therapeutics Inc (NASDAQ:AKBA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AKBA is 82.6. 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 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 21.3% in 2020 through September 25th and beat the market by 17.7 percentage points. Unfortunately AKBA wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on AKBA were disappointed as the stock returned -81.7% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Get real-time email alerts: Follow Akebia Therapeutics Inc. (NASDAQ:AKBA)
Disclosure: None. This article was originally published at Insider Monkey.
Crews struggle with deadly wildfires racing through Northern California, wine country
SAN FRANCISCO – Fire crews on Tuesday battled two ferocious blazes – including one torching portions of the state’s beloved wine country – that destroyed homes and forced at least 70,000 people to scramble to safety.
The entire town of Calistoga in Napa County was ordered to evacuate Monday evening as flames closed in on the 5,000-population community.
Shasta County Sheriff Eric Magrini confirmed three people died in the Zogg Fire, which has burned through 40,317 acres near Redding in Northern California since Sunday.
The Glass Fire, which also ignited Sunday, has charred more than 36,236 acres in the Napa and Sonoma wine region about 45 miles north of San Francisco, according to Cal Fire.
Gusty winds, which accelerated the pace of the fires, eased somewhat. But the Glass and Zogg fires were still at 0% containment as of Tuesday. “Our firefighters have not had much of a break, and these residents have not had much of a break,” said Daniel Berlant, Cal Fire’s assistant deputy director.
Fire officials say the Zogg Fire exhibits “high-intensity” fire behavior on the northwest end and is partially burning in the footprint of the 2018 Carr Fire.
The Glass Fire has destroyed dozens of structures, including homes in Santa Rosa, the Chateau Boswell winery and the Black Rock Inn in the Napa County town of St. Helena. At least 14 restaurants, resorts and wineries, including Calistoga Ranch and St. Helena’s acclaimed Restaurant at Meadowood, were damaged or lost, Eater San Francisco reported.
What we know: Zogg Fire near Redding more than doubles in size again, forces more to evacuate
Devastating photos: See Glass Fire’s impact on Chateau Boswell winery in California’s Napa Valley
The fires in Napa and Sonoma come as the region nears the third anniversary of deadly blazes that erupted in 2017, including one that killed 22 people and destroyed 5,600 structures. Last month, many of those same residents were evacuated from the path of a lightning-sparked fire that became the fourth-largest in state history.
Late Monday, California Gov. Gavin Newsom declared a state of emergency in Shasta, Napa and Sonoma counties and asked President Donald Trump for federal fire assistance.
David Zachary Brown and Ricardo Mosqueda, who share an apartment in the Rincon Valley neighborhood of Santa Rosa, are among the evacuees staying at the Petaluma Community Center while waiting to find out when they can return home.
Both got cellphone alerts about the fire late Sunday and headed out around midnight.
“We could see the fire coming down the hill next to Calistoga Road. Blazing red embers were just burning up the whole hillside,’’ Brown said. “At first it was over the hills and you could see the flames reflecting off the smoke, these big, bright billows of smoke. And a little while later it started coming over the hill.’’
Without a car or a ride, they left all their belongings behind and set out on foot, reaching the evacuation center at the Veterans Memorial Building some four miles away past 1:30 a.m.
Sonoma County Supervisor Susan Gorin evacuated her property in the Oakmont community of Santa Rosa at about 1 a.m. Monday. Flames singed three neighboring houses as she fled, she said.
“We’re experienced with that,” she said. “Once you lose a house and represent thousands of folks who’ve lost homes, you become pretty fatalistic that this is a new way of life and, depressingly, a normal way of life, the megafires that are spreading throughout the West.”
Gorin, who is rebuilding a home damaged in the 2017 fires, struggled to make sense of another blow. “It’s like God has no sympathy, no empathy for Sonoma County,” she told the San Francisco Chronicle.
‘We just don’t have words’: At least 3 dead as California wildfires explode in wine country, forcing thousands to flee
The loss of revered Napa landmarks was devastating, Jean-Baptiste Jacquot told USA TODAY. Jacquot and wife Brittany run JBJ Pictures, a luxury wedding photo and video company that has shot numerous weddings at Meadowood and Calistoga Ranch.
“We are heartbroken along with the rest of the wedding and hospitality professionals in Napa Valley,” Jacquot said. “This is where we used to document one of the best days of our couples’ lives, where they would gather with their family and friends to celebrate love.”
Fire season in California has been historic this year: More than 8,100 wildfires have singed more than 3.7 million acres, according to Cal Fire. Since Aug. 15 – when California’s fire activity elevated – 29 people have died, and more than 7,000 structures have been destroyed.
By Monday night, Pacific Gas & Electric said it had restored electricity to all of the 100,000 customers whose power was shut off in advance of high winds in fire zones. However, PG&E said about 24,000 people remained without power in areas affected by two fires in Napa, Sonoma, Shasta and Tehama counties. The utility’s equipment has caused previous disasters, including the 2018 Camp Fire that killed 85 people and devastated the town of Paradise in the Sierra Nevada foothills.
Contributing: David Benda and Michele Chandler, Redding (Calif.) Record Searchlight; The Associated Press
This article originally appeared on USA TODAY: California wildfires: Zogg fire kills 3, Glass fire burns wine country
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