Netflix, Inc. (NASDAQ:NFLX) has seen an increase in hedge fund interest in recent months. You probably heard the news that Carl Icahn is trimming his holdings. However, the overall trend is positive. NFLX was in 56 hedge funds’ portfolio at the end of the third quarter of 2014. There were 54 hedge funds with NFLX positions at the end of June.
In the financial world there are a multitude of methods stock traders use to appraise their stock investments. Two of the most useful methods are hedge fund and insider trading sentiment. Experts at Insider Monkey, a website specializing in hedge funds, have shown that, historically, those who follow the best picks of the elite investment managers can trounce their index-focused peers by a very impressive amount (see the details here).
Keeping this in mind, let’s take a glance at the fresh action regarding Netflix, Inc. (NASDAQ:NFLX).
What have hedge funds been doing with Netflix, Inc. (NASDAQ:NFLX)?
At the end of the third quarter, a total of 56 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of 4% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially.
Of the funds tracked by Insider Monkey, Philippe Laffont’s Coatue Management had the most valuable position in Netflix, Inc. (NASDAQ:NFLX), worth close to $939 million, comprising 9.6% of its total 13F portfolio. On Coatue Management’s heels is Carl Icahn of Icahn Capital LP, with a $637 million position; 1.9% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Andreas Halvorsen’s Viking Global, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.
Consequently, key hedge funds were breaking ground themselves. PEAK6 Capital Management, managed by Matthew Hulsizer, created the most outsized call position in Netflix, Inc. (NASDAQ:NFLX). PEAK6 Capital Management had 65.4 million invested in the company at the end of the quarter. George Soros’s Soros Fund Management also initiated a $44.6 million position during the quarter. The other funds with new positions in the stock are Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management, Paul Hudson’s Glade Brook Capital Partners, and Daniel S. Och’s OZ Management.