BlackBerry Ltd (NASDAQ:BBRY) was in 17 hedge funds’ portfolio at the end of September. BBRY investors should be aware of a large decrease in hedge fund interest of late. There were 29 hedge funds in our database with BBRY holdings at the end of the second quarter. Billionaire Andreas Halvorsen, Spencer M. Waxman, Fang Zheng, and Josh Resnick dumped their entire BlackBerry Ltd. (NASDAQ:BBRY) holdings during the quarter. Since BlackBerry shares gained more than 12% since the end of the quarter, these funds actually left money on the table by bailing out. Should you be concerned about hedge funds’ moves?
While there are greater than 8000 funds with their doors open at present, hedge fund experts at Insider Monkey hone in on the upper echelon of this club, approximately 700 funds. These investment experts administer most of the hedge fund industry’s total asset base, and by observing their entire 13F stock picks, Insider Monkey has discovered many investment strategies that have historically exceeded the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 18 percentage points per annum for a decade in their back tests. Other strategies also support the thesis that hedge funds, on average, are good at picking winners and losers. However, this doesn’t guarantee that they are right about Blackberry.
With all of this in mind, let’s take a look at the new action regarding Blackberry Ltd (NASDAQ:BBRY).
What does the smart money think about Blackberry Ltd (NASDAQ:BBRY)?
At Q3’s end, a total of 17 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of -41% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes significantly.
According to hedge fund intelligence website Insider Monkey, Fairfax Financial Holdings, managed by Prem Watsa, holds the largest position in Blackberry Ltd (NASDAQ:BBRY). Fairfax Financial Holdings has a $464 million position in the stock, comprising 31.4% of its 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $73.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions comprise Nelson Obus’s Wynnefield Capital, Irving Kahn’s Kahn Brothers and J. Carlo Cannell’s Cannell Capital.
Because BlackBerry Ltd (NASDAQ:BBRY) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that slashed their full holdings last quarter. It’s worth mentioning that Spencer M. Waxman’s Shannon River Fund Management said goodbye to the biggest stake of the 700 funds tracked by Insider Monkey, worth close to $41 million in stock. Andreas Halvorsen’s fund, Viking Global, also cut its stock, about $39.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 12 funds last quarter.