Hedge Funds Aren’t Crazy About Santander Consumer USA Holdings Inc (SC) AnymoreDecember 7, 2019
Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Santander Consumer USA Holdings Inc (NYSE:SC).
Santander Consumer USA Holdings Inc (NYSE:SC) has experienced a decrease in hedge fund sentiment of late. SC was in 23 hedge funds’ portfolios at the end of the third quarter of 2019. There were 26 hedge funds in our database with SC positions at the end of the previous quarter. Our calculations also showed that SC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
According to most stock holders, hedge funds are viewed as underperforming, outdated financial vehicles of years past. While there are greater than 8000 funds with their doors open today, Our researchers hone in on the moguls of this club, around 750 funds. These money managers manage most of the hedge fund industry’s total asset base, and by tailing their top stock picks, Insider Monkey has determined a number of investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points per year since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .
Joshua Friedman of Canyon Capital Advisors
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. Let’s take a glance at the key hedge fund action encompassing Santander Consumer USA Holdings Inc (NYSE:SC).
What have hedge funds been doing with Santander Consumer USA Holdings Inc (NYSE:SC)?
Heading into the fourth quarter of 2019, a total of 23 of the hedge funds tracked by Insider Monkey were…