QUALCOMM, Inc. (NASDAQ:QCOM) shareholders have witnessed a decrease in support from the world’s most elite money managers of late. QCOM was in 75 hedge funds’ portfolio at the end of the third quarter of 2014. There were 81 hedge funds in our database with QCOM holdings at the end of the previous quarter. Big guns like Leon Cooperman and Lee Ainslie sold out of their positions, whereas billionaire Rob Citrone and Matt Hulsizer initiated smaller positions in the technology giant. Should you be worried about these developments?
According to most stock holders, hedge funds are assumed to be worthless, outdated investment tools of yesteryear. While there are over 8000 funds trading at the moment, experts at Insider Monkey, a website specializing in hedge funds, choose to focus on the aristocrats of this group, around 700 funds. By tailing their matchless picks, Insider Monkey has uncovered a number of investment strategies that have historically beaten Mr. Market. 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.
This doesn’t mean that you should be worried though because QCOM is still one of the most popular stocks among hedge funds. In this article we’re going to review the recent action encompassing QUALCOMM, Inc. (NASDAQ:QCOM).
How are hedge funds trading QUALCOMM, Inc. (NASDAQ:QCOM)?
At the end of the third quarter, a total of 75 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -7% from the second quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully.
Of the funds tracked by Insider Monkey, Ken Fisher’s Fisher Asset Management had the biggest position in QUALCOMM, Inc. (NASDAQ:QCOM), worth close to $695.5 million, accounting for 1.5% of its total 13F portfolio. The second largest stake is held by Generation Investment Management, led by David Blood and Al Gore, holding a $576.2 million position; the fund has 9% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions encompass John H. Scully’s SPO Advisory Corp, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and William B. Gray’s Orbis Investment Management.
Since QUALCOMM, Inc. (NASDAQ:QCOM) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few funds that decided to sell off their positions entirely in third quarter. Interestingly, Leon Cooperman’s Omega Advisors said goodbye to the biggest position of the “upper crust” of funds tracked by Insider Monkey, totaling an estimated $100.7 million in stock. John A. Levin’s fund, Levin Capital Strategies, also dumped its stock, about $77.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 6 funds in third quarter.