Hedge Funds Have Never Been This Bullish On Amazon.com, Inc. (AMZN)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Coronavirus is probably the #1 concern in investors' minds right now. It should be. We estimate that COVID-19 will kill around 5 million people worldwide and there is a 3.3% probability that Donald Trump will die from the new coronavirus (see the details). So, how do we invest in this environment? We track hedge funds and corporate insiders for leads. Hedge funds’ top 5 stock picks returned 2.9% through March 2nd and beat the S&amp;P 500 ETFs by nearly 7 percentage points. Investing in index funds guarantees you average returns, not superior returns. We are looking to generate superior returns for our readers. That’s why we believe it isn’t a waste of time to check out hedge fund sentiment before you invest in a stock like Amazon.com, Inc. (NASDAQ:AMZN).” data-reactid=”12″>Coronavirus is probably the #1 concern in investors’ minds right now. It should be. We estimate that COVID-19 will kill around 5 million people worldwide and there is a 3.3% probability that Donald Trump will die from the new coronavirus (see the details). So, how do we invest in this environment? We track hedge funds and corporate insiders for leads. Hedge funds’ top 5 stock picks returned 2.9% through March 2nd and beat the S&P 500 ETFs by nearly 7 percentage points. Investing in index funds guarantees you average returns, not superior returns. We are looking to generate superior returns for our readers. That’s why we believe it isn’t a waste of time to check out hedge fund sentiment before you invest in a stock like Amazon.com, Inc. (NASDAQ:AMZN).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Is Amazon.com, Inc. (NASDAQ:AMZN) a buy here? Investors who are in the know are becoming more confident. The number of long hedge fund bets rose by 21 recently. Our calculations also showed that AMZN ranked #1 among the 30 most popular stocks among hedge funds (click for Q4 rankings and see the video below for Q3 rankings). AMZN was in 202 hedge funds’ portfolios at the end of December. There were 181 hedge funds in our database with AMZN holdings at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.” data-reactid=”13″>Is Amazon.com, Inc. (NASDAQ:AMZN) a buy here? Investors who are in the know are becoming more confident. The number of long hedge fund bets rose by 21 recently. Our calculations also showed that AMZN ranked #1 among the 30 most popular stocks among hedge funds (click for Q4 rankings and see the video below for Q3 rankings). AMZN was in 202 hedge funds’ portfolios at the end of December. There were 181 hedge funds in our database with AMZN holdings at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

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<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 large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 72.9% since March 2017 and outperformed the S&amp;P 500 ETFs by more than 41 percentage points. Our short strategy outperformed the S&amp;P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.” data-reactid=”26″>In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 72.9% since March 2017 and outperformed the S&P 500 ETFs by more than 41 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="We leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters, listen to stock pitches at hedge fund conferences, and go through short-term trade recommendations like&nbsp;this one. We even check out recommendations of&nbsp;services with hard to believe track records. Last month, we recommended a long position in one of the most shorted stocks in the market. No, our recommendation wasn’t Tesla (TSLA). It was a better pick than Tesla as this stock gained nearly 50% in 3 weeks.” data-reactid=”27″>We leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters, listen to stock pitches at hedge fund conferences, and go through short-term trade recommendations like this one. We even check out recommendations of services with hard to believe track records. Last month, we recommended a long position in one of the most shorted stocks in the market. No, our recommendation wasn’t Tesla (TSLA). It was a better pick than Tesla as this stock gained nearly 50% in 3 weeks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Now we're going to take a look at the fresh hedge fund action regarding Amazon.com, Inc. (NASDAQ:AMZN).” data-reactid=”28″>Now we’re going to take a look at the fresh hedge fund action regarding Amazon.com, Inc. (NASDAQ:AMZN).

What does smart money think about Amazon.com, Inc. (NASDAQ:AMZN)?

At Q4’s end, a total of 202 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards AMZN over the last 18 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing 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="More specifically, Citadel Investment Group was the largest shareholder of Amazon.com, Inc. (NASDAQ:AMZN), with a stake worth $5353 million reported as of the end of September. Trailing Citadel Investment Group was Fisher Asset Management, which amassed a stake valued at $3263.9 million. Eagle Capital Management, Viking Global, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Ursa Fund Management allocated the biggest weight to Amazon.com, Inc. (NASDAQ:AMZN), around 36.08% of its 13F portfolio. Crake Asset Management is also relatively very bullish on the stock, dishing out 16.34 percent of its 13F equity portfolio to AMZN.” data-reactid=”42″>More specifically, Citadel Investment Group was the largest shareholder of Amazon.com, Inc. (NASDAQ:AMZN), with a stake worth $5353 million reported as of the end of September. Trailing Citadel Investment Group was Fisher Asset Management, which amassed a stake valued at $3263.9 million. Eagle Capital Management, Viking Global, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Ursa Fund Management allocated the biggest weight to Amazon.com, Inc. (NASDAQ:AMZN), around 36.08% of its 13F portfolio. Crake Asset Management is also relatively very bullish on the stock, dishing out 16.34 percent of its 13F equity portfolio to AMZN.

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