Hedge Funds Are Nibbling On Roku, Inc. (ROKU)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think of Roku, Inc. (NASDAQ:ROKU) based on that data.” data-reactid=”12″>We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think of Roku, Inc. (NASDAQ:ROKU) based on that data.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Roku, Inc. (NASDAQ:ROKU) has experienced an increase in activity from the world’s largest hedge funds in recent months. Our calculations also showed that ROKU isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.” data-reactid=”13″>Roku, Inc. (NASDAQ:ROKU) has experienced an increase in activity from the world’s largest hedge funds in recent months. Our calculations also showed that ROKU isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the financial world there are a multitude of formulas market participants have at their disposal to analyze publicly traded companies. Some of the most underrated formulas are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce their index-focused peers by a healthy margin (see the details here).” data-reactid=”15″>In the financial world there are a multitude of formulas market participants have at their disposal to analyze publicly traded companies. Some of the most underrated formulas are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce their index-focused peers by a healthy margin (see the details here).

John Overdeck of Two Sigma Advisors

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities&nbsp;like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here.&nbsp;We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&amp;P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors.&nbsp;With all of this in mind we’re going to take a peek at the recent hedge fund action surrounding Roku, Inc. (NASDAQ:ROKU).” data-reactid=”28″>At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind we’re going to take a peek at the recent hedge fund action surrounding Roku, Inc. (NASDAQ:ROKU).

What have hedge funds been doing with Roku, Inc. (NASDAQ:ROKU)?

At Q1’s end, a total of 35 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ROKU over the last 18 quarters. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were adding to their stakes significantly (or already accumulated large positions).

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The largest stake in Roku, Inc. (NASDAQ:ROKU) was held by Citadel Investment Group, which reported holding $173.7 million worth of stock at the end of September. It was followed by Laurion Capital Management with a $24.9 million position. Other investors bullish on the company included D E Shaw, Ogborne Capital, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Ogborne Capital allocated the biggest weight to Roku, Inc. (NASDAQ:ROKU), around 22.49% of its 13F portfolio. Empirical Capital Partners is also relatively very bullish on the stock, designating 8.19 percent of its 13F equity portfolio to ROKU.” data-reactid=”42″>The largest stake in Roku, Inc. (NASDAQ:ROKU) was held by Citadel Investment Group, which reported holding $173.7 million worth of stock at the end of September. It was followed by Laurion Capital Management with a $24.9 million position. Other investors bullish on the company included D E Shaw, Ogborne Capital, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Ogborne Capital allocated the biggest weight to Roku, Inc. (NASDAQ:ROKU), around 22.49% of its 13F portfolio. Empirical Capital Partners is also relatively very bullish on the stock, designating 8.19 percent of its 13F equity portfolio to ROKU.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Consequently, key hedge funds were leading the bulls' herd. Laurion Capital Management, managed by Benjamin A. Smith, assembled the most valuable position in Roku, Inc. (NASDAQ:ROKU). Laurion Capital Management had $24.9 million invested in the company at the end of the quarter. Joel Ramin's 12 West Capital Management also made a $15.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Scott Stewart Miller’s Greenhaven Road Investment Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.” data-reactid=”43″>Consequently, key hedge funds were leading the bulls’ herd. Laurion Capital Management, managed by Benjamin A. Smith, assembled the most valuable position in Roku, Inc. (NASDAQ:ROKU). Laurion Capital Management had $24.9 million invested in the company at the end of the quarter. Joel Ramin’s 12 West Capital Management also made a $15.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Scott Stewart Miller’s Greenhaven Road Investment Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.

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