JPMorgan Chase & Co. (NYSE:JPM) has experienced a decrease in hedge fund sentiment of late. JPM was in 104 hedge funds’ portfolio at the end of the third quarter of 2014. There were 104 hedge funds with JPM positions at the end of June. Since the number of hedge funds usually increase every quarter, a smaller percentage of hedge funds actually had bullish bets placed on JPM during the third quarter.
To most market participants, hedge funds are seen as unimportant, old investment tools of years past. While there are over 8000 funds in operation at present, Experts at hedge fund tracking site Insider Monkey hone in on the elite of this club, around 700 funds. These money managerswatch over the majority of the smart money’s total capital, and by watching their matchless investments, Insider Monkey has unearthed numerous investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 18 percentage points per year for a decade in their back tests.
With all of this in mind, let’s take a peek at the key action regarding JPMorgan Chase & Co. (NYSE:JPM).
How are hedge funds trading JPMorgan Chase & Co. (NYSE:JPM)?
Heading into Q4, a total of 104 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings considerably.
According to hedge fund experts at Insider Monkey, Ken Fisher’s Fisher Asset Management had the largest position in JPMorgan Chase & Co. (NYSE:JPM), worth close to $814.5 million, accounting for 1.7% of its total 13F portfolio. Another bullish hedge fund manager is OZ Management, led by Daniel S. Och, holding a $406 million call position; 1.2% of its 13F portfolio is allocated to the company. Remaining members of the smart money with similar optimism consist of Richard S. Pzena’s Pzena Investment Management, Ric Dillon’s Diamond Hill Capital and Daniel S. Och’s OZ Management.
Since JPMorgan Chase & Co. (NYSE:JPM) has faced declining sentiment (in our experience) from the aggregate hedge fund industry, it’s easy to see that there exists a select few money managers that slashed their full holdings heading into Q4. Interestingly, Matthew Hulsizer’s PEAK6 Capital Management dropped the biggest stake of the 700 funds tracked by Insider Monkey, totaling an estimated $60.5 million in call options., and Benjamin A. Smith of Laurion Capital Management was right behind this move, as the fund cut about $34.6 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same.