4 times a year it’s 13F Form day. The form required to be released by all Hedge Fund managers with over $100 million in assets. The latest 13F day fell on May 15 this week.
The form provides interesting information regarding what companies the top institutions are holding and purchased over the last quarter. Their put and call options, American Depositary Receipts (ADRs) and convertible notes are also reported. This data can provide important insight into what the “smart-money” was doing within the market during Coronavirus economic conditions.
Typically, major business news sources report the companies held by the largest hedge funds in the U.S. however, these names are the usual stock candidates you hear all the time (i.e. FANNG stocks). What Wealthpress Head Trader Roger Scott has been researching since the 13F form was released, with a little bit of a different angle: the stocks the top gaining hedge funds have been holdings/buying this last quarter.
There are 2 stocks that really jump out to us within this research report…
Hedge funds have been accumulating these 2 stocks at the same rate as the FAANG stocks…
Companies you may not have heard of or thought they weren’t in the same investment tier as the big names.
Sea Ltd. (NYSE:SE) – an internet service provider company offering Digital Entertainment, E-Commerce and Digital Financial Services known as Garena, Shopee and AirPay. The company operates predominantly in Asia.
The company reported a Q1 2020 loss on May 18 of $0.61 per share on revenue of $714.9 million. The consensus estimate was a loss of $0.38 per share on revenue of $920.9 million. Revenue did grow 103.2% in the last year however.
Datadog Inc. (NASDAQ:DDOG) – Monitoring and analytics platform for developers, IT operations teams, and business users in the cloud age.
The company reported Q1 2020 earnings on May 11 of $0.03 per share on revenue of $131.2 million. The consensus estimate was a loss of $0.02 per share on revenue of $117.1 million.
Watch the full interview to learn the biggest sub-sectors capital is now flowing into in this COVID-19 pandemic/stay-at-home world and more about the 13F trading strategy.