While the market is driven by short-term sentiment influenced by the accommodative interest rate environment in the US, virus news and stimulus spending, many smart money investors are beginning to be wary of to the current bull run since March and covering or reducing many positions. Some fund managers are betting on the Dow to hit 40,000 to generate strong returns. However, as we know, large investors tend to buy stocks with strong fundamentals that can turn a profit in both bull and bear markets, so we think we can take advantage of emulating them. In this article, we’re going to take a look at the smart money sentiment surrounding C3.ai, Inc. (NYSE: AI).
Is C3.ai (AI) stock a purchase? The best stock pickers were betting on stocks. The number of hedge fund bull bets increased by 37 recently. C3.ai, Inc. (NYSE: AI) was in 37 hedge fund portfolios at the end of Q4 2020. Our calculations also showed that AI is not in the top 30 most popular stocks among hedge funds (click for Q4 ratings).
At Insider Monkey, we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill that decriminalizes marijuana. So, we are reviewing this under the radar. cannabis stock now. We go through lists like 10 best battery stocks to buy to identify the next action with a potential upside of 10 times. Although we recommend positions in only a small fraction of the companies we analyze, we verify as many stocks as we can. We read letters from hedge fund investors and hear equity presentations at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Now let’s review the latest hedge fund action regarding C3.ai, Inc. (NYSE: AI).
Do Hedge Funds Think AI Is A Good Stock To Buy Now?
At the end of the fourth quarter, a total of 37 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 37 from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position on AI a year ago. So, let’s examine which hedge funds were among the top shareholders and which hedge funds were making big moves.
More specifically, Tiger Global Management LLC was the largest shareholder in C3.ai, Inc. (NYSE: AI), with a stake worth $ 138.8 million reported at the end of December. Following Tiger Global Management LLC was Tudor Investment Corp, which accumulated a stake valued at $ 104.1 million. Cadian Capital, Matrix Capital Management and Whale Rock Capital Management also appreciated the shares very much, becoming one of the company’s largest hedge fund holders. In terms of portfolio weights assigned to each position, Tudor Investment Corp assigned the highest weight to C3.ai, Inc. (NYSE: AI), about 2.94% of its 13F portfolio. Ratan Capital Group is also relatively very bullish on equities, reserving 1.94 percent of its 13F equity portfolio for AI.
As could reasonably be expected, the key hedge funds were leading the way themselves. Tiger Global Management LLC, managed by Chase Coleman, created the largest position in C3.ai, Inc. (NYSE: AI). Tiger Global Management LLC had $ 138.8 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also invested $ 104.1 million in the stock during the quarter. The other funds with new positions in IA are Cadian Capital by Eric Bannasch, Matrix Capital Management by David Goel and Paul Ferri, and Whale Rock Capital Management by Alex Sacerdote.
Let’s review hedge fund activity in other stocks, not necessarily in the same industry as C3.ai, Inc. (NYSE: AI) but with similar value. These stocks are WPP Plc (NASDAQ: WPP), The JM Smucker Company (NYSE: SJM), James Hardie Industries plc (NYSE: JHX), DaVita Inc (NYSE: DVA), Raymond James Financial, Inc. (NYSE: RJF) . , Packaging Corporation Of America (NYSE: PKG) and Credicorp Ltd. (NYSE: BAP). The market values of this group of stocks are the closest to the market value of AI.[table] Ticker, No. of HF with positions, Total value of HF positions (x1000), Change in position HF WPP, 6.37552, -1 SJM, 34.580428.3 JHX, 4.11803.0 DVA, 32.4814258, – 2 RJF, 34.580848.6 PKG, 16.128753, -7 BAP, 15.203933, -4 Average, 20.1.908225, -0.7 [/table]
See the table here if you have formatting problems.
As you can see, these stocks averaged 20.1 hedge funds with bullish positions and the average amount invested in these stocks was $ 908 million. That figure was $ 484 million in AI’s case. JM Smucker Company (NYSE: SJM) is the most popular stock on this chart. On the other hand, James Hardie Industries plc (NYSE: JHX) is the least popular with only 4 bullish positions in hedge funds. Compared to these stocks, C3.ai, Inc. (NYSE: AI) is more popular with hedge funds. Our overall hedge fund sentiment score for AI is 90. Stocks with a 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 the 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7.9% in 2021 through April 1 and still outperform the market by 0.4 percentage points. Unfortunately, AI was not as popular as these 30 stocks and hedge funds that were betting on AI were disappointed that the stocks returned -50.3% since the end of the fourth quarter (as of 4/1 ) and underperformed the market. If you are interested in investing in large-cap stocks with great upside potential, you should check out the 30 most popular stocks among hedge funds, as most of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Insider Monkey.