YWR: Hedge Fund Holdings Analysis
The year is going well, unless you are a CTA or macro fund.
CTA’s keep selling the lows and buying the highs.
Underweight in Energy
It’s great to see HF’s shorting energy. They’ve been shorting all year, but good to see them pressing on the lows.
Crude Oil is one of our favorite set-ups here (Seven Setups)
Underweight Mag7?
Mag7 are the most popular positions at Hedge Funds, but at 16% of net exposure it’s a large underweight vs. the S&P 500 (31%).
An underweight this big on some of the best businesses in the world begs the question whether we are all being too bearish on Mag7.
Hedge funds are still delivering 7-10%/year so their Mag7 underweight hasn’t been a problem.
Hedge Funds love Healthcare
This overweight in healthcare also shows up in the BofA Fund Manager survey (Killer Charts).
Eli Lilly, United Healthcare and Boston Scientific are top hedge fund positions.
Top 21 Most Consensus Positions
This is a list of the 21 most popular positions from the Top 20 stated equity holdings at hedge funds with over $1bn in equity assets.
There have been a few changes, but for the most part the top 21 most popular positions haven’t changed much ytd.
Amazon replaced Microsoft as the most popular stock with over 104 hedge funds owning it in their Top 20.
Nvidia’s popularity has fallen since January. Nobody wants to be the ‘idiot’ who bought it at the top. Only 47 funds out of 337 own it in their Top 20. In January this was 68.
Good to see Tesla made it on to the list for the first time (Tesla at $550/share).
Broadcom is ‘in’ and Advanced Micro Devices is ‘out’.
Good to see there are still no gold miners or gold ETF’s on the list ($4,500 gold with Jeremy Gray).
For comparison purposes: the top 21 list from Jan 10th this year.
Most Consensus Funds
Marshall Wace is moving up the ranks and now has 11 of their Top 20 positions on the YWR Top 21 list. Back in January this was 8 positions.
Millennium use to be one of the most consensus funds, but now have only 8 positions in the YWR Top 21 list.
Still that correlation where the bigger funds own more of the Top 21 stocks and the smaller funds are non-consensus.
Citadel Top 20
I like to use the YWR HF Holdings dataset to look at individual fund positioning.
We’ve spoken about AT&T in the past (Untouchable #7). Interesting to see Citadel make it a top position.
Non-Consensus Ideas
We take funds with 0 overlap between their Top 20 positions the YWR Top 21 list. These are the misfits. We analyse the data to look for common positions.
Liberty Media share classes are a popular idea.
Hess shows up a lot. It is one of Citadel’s Top 20 as well.
Those are my takeaways, but take a look at the data yourself and check out the Top 20 for your favourite funds.
Below is a link to the dataset with Top 20 positions for over 1,000 hedge funds as of Oct 4th.