Published on 29 Oct 2021 on Insider Monkey via Yahoo Finance
Is News Corp (NWS) A Good Stock To Buy?
We at Insider Monkey have gone over 873 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 June 30th. In this article, we look at what those funds think of News Corp (NASDAQ:NWS) based on that data.
Is NWS a good stock to buy? The smart money was getting less bullish. The number of long hedge fund bets fell by 2 lately. News Corp (NASDAQ:NWS) was in 19 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 21. Our calculations also showed that NWS isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 21 hedge funds in our database with NWS positions at the end of the first quarter.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.