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Hedge Funds Are Piling Into NIO Inc. (NIO)


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Hedge Funds Are Piling Into NIO Inc. (NIO)

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 NIO Inc. (NYSE: 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 we’re going to go over the key hedge fund action surrounding NIO Inc. (NYSE:NIO).

What does smart money think about NIO Inc. (NYSE:NIO)?

At the end of the second quarter, a total of 30 of the hedge funds tracked by Insider Monkey were long this stock, a change of 88% from the first quarter of 2020. By comparison, 14 hedge funds held shares or bullish call options in NIO 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.

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Among these funds, D E Shaw held the most valuable stake in NIO Inc. (NYSE:NIO), which was worth $146.9 million at the end of the third quarter. On the second spot was Jericho Capital Asset Management which amassed $90.5 million worth of shares. Renaissance Technologies, Electron Capital Partners, and Millennium Management 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 Electron Capital Partners allocated the biggest weight to NIO Inc. (NYSE:NIO), around 7.65% of its 13F portfolio. Jericho Capital Asset Management is also relatively very bullish on the stock, setting aside 3.54 percent of its 13F equity portfolio to NIO.

As one would reasonably expect, some big names have jumped into NIO Inc. (NYSE:NIO) headfirst. Jericho Capital Asset Management, managed by Josh Resnick, assembled the biggest position in NIO Inc. (NYSE:NIO). Jericho Capital Asset Management had $90.5 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $71.8 million position during the quarter. The other funds with brand new NIO positions are Jos Shaver’s Electron Capital Partners, Simon Sadler’s Segantii Capital, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.

Let’s now review hedge fund activity in other stocks similar to NIO Inc. (NYSE:NIO). These stocks are Dr. Reddy’s Laboratories Limited (NYSE:RDY), 10x Genomics, Inc. (NASDAQ:TXG), Crown Holdings, Inc. (NYSE:CCK), Fastly, Inc. (NYSE:FSLY), Cna Financial Corporation (NYSE:CNA), NiSource Inc. (NYSE:NI), and Equitable Holdings, Inc. (NYSE:EQH). This group of stocks’ market values are similar to NIO’s market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RDY,12,173335,1 TXG,19,313211,-1 CCK,51,1239713,-5 FSLY,27,1662391,5 CNA,12,48476,0 NI,21,300585,-6 EQH,39,1111581,12 Average,25.9,692756,0.9 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 25.9 hedge funds with bullish positions and the average amount invested in these stocks was $693 million. That figure was $568 million in NIO’s case. Crown Holdings, Inc. (NYSE:CCK) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (NYSE:RDY) is the least popular one with only 12 bullish hedge fund positions. NIO Inc. (NYSE:NIO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NIO is 63.1. 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. 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 still beat the market by 17.6 percentage points. Hedge funds were also right about betting on NIO as the stock returned 142.6% during Q3 (through September 14th) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.

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Hedge Funds Are Piling Into NIO Inc. (NIO)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 […]


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