It's also important to note that 90% of my portfolio is in index funds and blue chip stocks. I know many of you have been asking me to share my stock picks for Q2/Q3 2020. This article was originally published at Insider Monkey.Sorry I'm a little late with this post. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.ĭisclosure: None.

Hedge funds were also right about betting on IPHI as the stock returned 21.9% during Q3 and outperformed the market by an even larger margin. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Compared to these stocks Inphi Corporation (NYSE:IPHI) is more popular among hedge funds. On the other hand Alamos Gold Inc (NYSE: AGI) is the least popular one with only 12 bullish hedge fund positions. First Bancorp (NYSE: FBP) is the most popular stock in this table. That figure was $220 million in IPHI's case. View table here if you experience formatting issues.Īs you can see these stocks had an average of 17.75 hedge funds with bullish positions and the average amount invested in these stocks was $150 million. This group of stocks' market caps are closest to IPHI's market cap. (NYSE: GOOS), and Alamos Gold Inc (NYSE: AGI). These stocks are First Bancorp (NYSE: FBP), Applied Industrial Technologies, Inc. Let's go over hedge fund activity in other stocks similar to Inphi Corporation (NYSE:IPHI). The other funds with brand new IPHI positions are Andrew Sandler's Sandler Capital Management, James Dondero's Highland Capital Management, and Will Graves's Boardman Bay Capital Management. Renaissance Technologies also initiated a $3.9 million position during the quarter. Tudor Investment Corp had $5.4 million invested in the company at the end of the quarter. Tudor Investment Corp, managed by Paul Tudor Jones, established the biggest position in Inphi Corporation (NYSE:IPHI). With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Cavalry Asset Management, D E Shaw, and Two Sigma Advisors were also very fond of the stock, giving the stock large weights in their portfolios. Trailing Millennium Management was Balyasny Asset Management, which amassed a stake valued at $31.2 million. More specifically, Millennium Management was the largest shareholder of Inphi Corporation (NYSE:IPHI), with a stake worth $31.8 million reported as of the end of March. There were 21 hedge funds in our database with IPHI holdings at the end of the previous quarter. IPHI was in 26 hedge funds' portfolios at the end of June. Our calculations also showed that IPHI isn't among the 30 most popular stocks among hedge funds (view the video below). The number of bullish hedge fund bets advanced by 5 recently. Is Inphi Corporation (NYSE: IPHI) undervalued? Hedge funds are getting more optimistic. That's why we scrutinize hedge fund sentiment before we invest in a stock like Inphi Corporation (NYSE: IPHI). If you pay attention to the actual hedge fund returns versus the returns of their long stock picks, you might believe that it is a waste of time to analyze hedge funds' purchases. Interestingly, an average long/short hedge fund returned only a fraction of this value due to the hedges they implemented and the large fees they charged. Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 24% during the same 9-month period, with the majority of these stock picks outperforming the broader market benchmark. For example in the first 9 months of this year through September 30th the Standard and Poor’s 500 Index returned approximately 20% (including dividend payments).

However, hedge funds' consensus picks on average deliver market beating returns. No one knows what the future holds and how market participants will react to the bountiful news that floods in each day. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking.

Stocks like iphi