Welcome back to Cook's Kitchen. This week I did another dive into the SEC 13F filings, those quarterly "inventory" lists that institutional investors and hedge funds have to publish showing how much of each stock they owned on December 31.
Yes, the data is anywhere from 50 to 150 days old now, but it still tells you what long-term conviction, or not, the big guys and gals had for particular stocks. Large funds tend to be adding to favorite positions quarter after quarter, or a change of heart is obvious in the tallies. And yes, since I shot this video on Wednesday morning, the stock market has cascaded nearly 10% lower. But that makes the position data and charts I show that much more interesting because you get to see that some of these stocks are now back to where the "whales of Wall Street" were buying them last quarter. Different Whales, Different Oceans In the video that accompanies this article, I show you how I'm actually using the older version of the Nasdaq.com website because it has a very clean and easy to use presentation. I also explain why, for the most part, it helps to look beyond the steady buying of behemoth investors like Blackrock, Vanguard, Fidelity and State Street because they have so many different entities they need to buy stock for. Their presence in a bull market, with no recession in sight, is vital but it is also more like the reliable ocean currents and trade winds. In the last episode, I profiled the big buying of the biggest hedge fund you've never heard of, Baillie Gifford of Edinburgh, Scotland... Where the Bulls Roam: TSLA, ILMN, SQ, NVTA, TTD Be sure to check out that article and video for more on one of my favorite disruptors, The Trade Desk ( TTD Quick Quote TTD - Free Report) , the "CME of digital advertising." TTD just reported another stellar quarter last night and is one of the few green issues today. And here's one stock and its big money fans I talked about in particular last week... What I like to focus on are the "smart money" managers like David Tepper, who was still buying Micron in Q4, Steve Mandel of Lone Pine Capital, and Andreas Halvorsen of Viking Global, a former Julian Robertson "tiger cub." Speaking of Mandel, who grew Lone Pine to nearly $40 billion AUM before scaling back a few years ago, I was really pleased to see him adding 788K shares to his large position in Square ( SQ Quick Quote SQ - Free Report) . Nearly 8.8 million shares puts Lone Pine at #6 on the list of top holders. And Halvorsen's Viking Global at #4 with just over 10M shares, only added 13K. But that means he hadn't lost his bullish outlook on the premier "fintech" innovator and small business ecosystem. I told my followers throughout Q4 that even though the Street seemed to temporarily hate SQ, we should be buyers near $60 and look for an eventual rekindling of the love affair. Now that shares have broken above the $82-83 double top of 2019, I see $90 as an easy target and potential new highs above $100 later this year. These two fund managers, Mandel and Halvorsen, are the kind of stock-pickers I love to follow and it's great to see them in the top ranks of long-term holders. (end of excerpt from Where the Bulls Roam) In this episode, I look at NVIDIA NVDA, lululemon athletica LULU, and Netflix NFLX which continues to defy the bear thesis that it's over-spending its way to create original content amidst rising competition. Speaking of the streaming wars, I also look at Disney DIS which becomes especially intriguing after the whales were buying the launch of Disney+ into the $140s last quarter only to be selling them below $120 this week on the double whammy of coronavirus panic and Bob Iger stepping aside. Also in the video, I explain how Virgin Galactic SPCE went public without an IPO and I look at the only FDA-approved cannabis-derived drug company in the market, GW Pharmaceuticals ( GWPH Quick Quote GWPH - Free Report) . So hit play on the video and if you just came for one stock, feel free to click ahead if you are short on time. Leave your comments on YouTube and be sure to give us a thumbs up if you found any useful information. Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the TAZR Trader and Healthcare Innovators portfolios. Click "Follow Author" above to receive his latest stock research and macro analysis.
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