Facebook Inc (NASDAQ:FB) was in 104 hedge funds’ portfolio at the end of September. According to data gathered by Insider Monkey, FB investors should be aware of a decrease in hedge fund interest lately. There were 106 hedge funds with FB positions at the end of June. Facebook Inc (NASDAQ:FB) is still one of the 15 most popular stocks among hedge funds. Should you pay attention to hedge fund moves or ignore them all together?
According to most shareholders, hedge funds are perceived as worthless, outdated investment vehicles of the past. They were once glamorous but not anymore. While there are greater than 8000 funds in operation today, experts at hedge fund tracking site Insider Monkey hone in on the crème de la crème of this club, approximately 700 funds. By watching their top stock picks, Insider Monkey has uncovered several investment strategies that have historically outstripped the S&P 500 index by a large margin. For instance, Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 18 percentage points per annum for a decade in their back tests. These stocks also returned 101% in real-time since August 2012.
With all of this in mind, we’re going to take a gander at the fresh action encompassing Facebook Inc (NASDAQ:FB).
What does the smart money think about Facebook Inc (NASDAQ:FB)?
Heading into Q4, a total of 104 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -2% from the previous quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes substantially.
Of the funds tracked by Insider Monkey, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in Facebook Inc (NASDAQ:FB). Lone Pine Capital has a $682.8 million position in the stock, comprising 2.7% of its 13F portfolio. The second most bullish hedge fund manager is Coatue Management, managed by Philippe Laffont, which held a $566.3 million position; 5.8% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish comprise Andreas Halvorsen’s Viking Global, Karthik Sarma’s SRS Investment Management and Daniel S. Och’s OZ Management.
Seeing as Facebook Inc (NASDAQ:FB) has witnessed declining sentiment from the smart money, we can see that there were a few hedgies who were dropping their full holdings at the end of the third quarter. It’s worth mentioning that Robert Pitts’s Steadfast Capital Management sold off the biggest investment of the 500+ funds tracked by Insider Monkey, valued at close to $125 million in stock, and Stanley Druckenmiller of Duquesne Capital was right behind this move, as the fund dumped about $63.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds at the end of the third quarter.