After several unrelenting days, we have finished crossing the numbers of nearly 900 13F deposits issued by the elite hedge funds and other investment firms that we follow at Insider Monkey, which leaked the stock portfolios. of these companies as of December 31. The results of this effort will be outlined in this article, as we share valuable insight into smart money sentiment toward Lattice Semiconductor Corporation (NASDAQ:LSCC).
Are LSCC shares a buy? The best stock pickers reduced their exposure. The number of long bets on hedge funds has been reduced by 1 in recent months. Lattice Semiconductor Corporation (NASDAQ:LSCC) was in 23 hedge fund portfolios at the end of Q4 2020. The all-time high for this statistic is 32. Our calculations also showed that LSCC is not among the 30 most popular stocks among hedge funds (click for Q4 ranking).
In the financial world, there are a number of tools available to investors for valuing stocks. Two of the most overlooked tools are hedge fund and insider trading indicators. We have shown that historically those who follow the best picks of the best fund managers can outperform larger indices by a solid amount. Insider Monkey’s monthly stock picks have returned 197% since March 2017 and outperformed S&P 500 ETFs by more than 124 percentage points (see details here). This is why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Richard Driehaus of Driehaus Capital
At Insider Monkey, we leave no stone unturned when searching for the next great investment idea. For example, the auto parts industry is a recession-resistant industry, so we’re taking a closer look. stock of auto parts which is growing at an annualized rate of 196%. We go through lists like the 15 best micro-cap stocks to buy now to identify the next stock with a 10x upside potential. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to stock market pitches at hedge fund conferences. You can subscribe to our free daily newsletter at our website. With all of that in mind, let’s take a look at the latest hedge fund action regarding Lattice Semiconductor Corporation (NASDAQ:LSCC).
Do hedge funds think LSCC is a good stock to buy now?
At the end of December, 23 of the hedge funds tracked by Insider Monkey held long positions in this security, a variation of -4% compared to the previous quarter. By comparison, 32 hedge funds held bullish stocks or call options in LSCC a year ago. With hedgie sentiment swirling, there is a “top tier” of key hedge fund managers who were significantly increasing their holdings (or had already built up significant positions).
Based on publicly available data on hedge funds and institutional investor investments compiled by Insider Monkey, Daniel Patrick Gibson’s Sylebra capital management holds the largest position in Lattice Semiconductor Corporation (NASDAQ: LSCC), worth nearly $ 87.7 million, or 2.2% of its total 13F portfolio. The second most optimistic fund manager is Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, which has a position of $ 79.8 million; 0.5% of its 13F portfolio is allocated to shares. Some other professional fund managers who hold long positions include Royce & Associates of Chuck Royce, Richard Driehaus Driehaus Capital and GLG Partners of Noam Gottesman. In terms of the portfolio weights assigned to each position, Sylebra Capital Management assigned the largest weight to Lattice Semiconductor Corporation (NASDAQ: LSCC), or approximately 2.23% of its 13F portfolio. Southport Management is also relatively very bullish on the stock, allocating 2.06% of its 13F equity portfolio to LSCC.
Since Lattice Semiconductor Corporation (NASDAQ: LSCC) has seen a decline in interest from hedge fund managers, we can see that a specific group of hedges has decided to sell their positions entirely as the first one approaches. trimester. At the top of the pile, Didric Cederholm’s Lion point ditched the largest position of all hedges tracked by Insider Monkey, worth around $ 13.3 million in inventory, and Renaissance Technologies was right behind the move as the fund downsized by $ 10 million. ‘approximately $ 9.1 million. These moves are intriguing to say the least, as total hedge fund interest fell by 1 fund before the first quarter.
Let’s review hedge fund activity in other stocks similar to Lattice Semiconductor Corporation (NASDAQ: LSCC). These stocks are Exelixis, Inc. (NASDAQ:EXEL), Tetra Tech, Inc. (NASDAQ:TTEK), Littelfuse, Inc. (NASDAQ:LFUS), AppFolio Inc (NASDAQ:APPF), Pure Storage, Inc. (NYSE:PSTG), Stitch Fix, Inc. (NASDAQ:SFIX) and Clearway Energy, Inc. (NYSE:CWEN). The market valuations of this group of shares correspond to the market valuation of LSCC.[table]Ticker, Number of HF with positions, Total value of HF positions (x1000), Change of HF position EXEL, 24.917565, -10 TTEK, 29.98927,7 LFUS, 21.486085, -1 APPF, 19.475881, -7 PSTG, 21.1128272, -1 SFIX, 32.688920.7 CWEN, 22.286227.3 Medium, 24.583125, -0.3 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $ 583 million. That figure was $ 266 million in the case of LSCC. Stitch Fix, Inc. (NASDAQ:SFIX) is the most popular stock in this table. On the other hand AppFolio Inc (NASDAQ:APPF) is the least popular with just 19 bullish hedge fund positions. Lattice Semiconductor Corporation (NASDAQ: LSCC) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for LSCC is 40.9. 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 have shown that top 30 most popular stocks among hedge funds, a return of 81.2% in 2019 and 2020 and an outperformance of 26 percentage points compared to the S&P 500 ETF (SPY). These stocks gained 12.3% in 2021 through April 19 and still beat the market by 0.9 percentage points. A small number of hedge funds were also right to bet on LSCC, with the stock having returned 22% since the end of the fourth quarter (through 4/19) and outperforming the market by an even larger margin.
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Disclosure: None. This article originally appeared on Monkey Insider.