Amazon.com, Inc. (NASDAQ:AMZN) investors should pay attention to a decrease in hedge fund sentiment in recent months. According to hedge fund tracking website Insider Monkey the number of hedge funds with bullish Amazon.com, Inc. (NASDAQ:AMZN) positions went down to 65 from 75. David Stemerman, Jason Capello, and Daniel Benton are some of the hedge fund managers who were bailing out of Amazon.
In the eyes of most market participants, hedge funds are perceived as unimportant, outdated investment tools of the past. While there are greater than 8000 funds with their doors open at the moment, Experts at hedge fund tracking site Insider Monkey hone in on the moguls of this group, around 700 funds. Most estimates calculate that this group of people preside over the majority of the smart money’s total capital, and by tracking their highest performing picks, Insider Monkey has found various investment strategies that have historically outrun the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 18 percentage points a year for a decade in their back tests.
In this article we will review some of the recent hedge fund action regarding Amazon.com, Inc. (NASDAQ:AMZN).
Hedge fund activity in Amazon.com, Inc. (NASDAQ:AMZN)
At the end of the third quarter, a total of 65 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
When looking at the prominent investors followed by Insider Monkey, Ken Fisher’s Fisher Asset Management had the biggest position in Amazon.com, Inc. (NASDAQ:AMZN), worth close to $793.7 million, accounting for 1.7% of its total 13F portfolio. On Fisher Asset Management’s heels is Soroban Capital Partners, managed by Eric W. Mandelblatt, which held a $322.4 million call position; the fund has 2.4% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism contain Ken Griffin’s Citadel Investment Group, John Griffin’s Blue Ridge Capital and David Blood and Al Gore’s Generation Investment Management.
Because Amazon.com, Inc. (NASDAQ:AMZN) has witnessed falling interest from hedge fund managers, logic holds that there lies a certain “tier” of fund managers that slashed their full holdings at the end of the third quarter. It’s worth mentioning that Columbus Circle Investors sold off the largest position of the 700 funds monitored by Insider Monkey, valued at an estimated $101 million in stock, and David Stemerman of Conatus Capital Management was right behind this move, as the fund sold off about $89.5 million worth. These moves are important to note, as total hedge fund interest fell by 10 funds at the end of the third quarter.