At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2015 reporting period, and noticed that Cisco Systems, Inc. (NASD: CSCO) was held by 11 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Click here to find out 10 S&P 500 Components Hedge Funds Are Buying »
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in CSCO positions, for this latest batch of 13F filers:
| Fund | New Position? | Change In Share Count | Change In Market Value ($ in 1000's) |
|---|---|---|---|
| Dreman Value Management L L C | Existing | +9,009 | +$223 |
| DNB Asset Management AS | Existing | +736,599 | +$19,077 |
| Sunbelt Securities Inc. | Existing | -1,604 | -$50 |
| Integral Derivatives LLC | Existing | +233,600 | +$6,415 |
| Sterling Capital Management LLC | Existing | -36,477 | -$1,987 |
| Barclays PLC | Existing | -543,204 | -$14,673 |
| Family Management Corp | NEW | +178,915 | +$4,925 |
| Bedell Frazier Investment Counseling LLC | Existing | -2,325 | -$130 |
| Pinnacle Summer Investments Inc. | Existing | -6,100 | -$155 |
| Evanson Asset Management LLC | Existing | +2,093 | +$24 |
| OLD National Bancorp IN | Existing | -16,203 | -$478 |
| Aggregate Change: | +554,303 | +$13,191 | |
In terms of shares owned, we count 4 of the above funds having increased existing CSCO positions from 12/31/2014 to 03/31/2015, with 6 having decreased their positions and 1 new position. Worth noting is that Squarepoint Ops LLC, included in this recent batch of 13F filers, exited CSCO common stock as of 03/31/2015.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the CSCO share count in the aggregate among all of the funds which held CSCO at the 03/31/2015 reporting period (out of the 3,948 we looked at in total). We then compared that number to the sum total of CSCO shares those same funds held back at the 12/31/2014 period, to see how the aggregate share count held by hedge funds has moved for CSCO. We found that between these two periods, funds reduced their holdings by 31,539,167 shares in the aggregate, from 3,801,695,712 down to 3,770,156,545 for a share count decline of approximately -0.83%. The overall top three funds holding CSCO on 03/31/2015 were:
| Fund | Shares of CSCO Held | |
|---|---|---|
| 1. | Vanguard Group Inc. | 288,377,031 |
| 2. | State Street Corp | 212,220,835 |
| 3. | Wellington Management Group LLP | 155,258,874 |
| 4-10 | Find out the full Top 10 Hedge Funds Holding CSCO |
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Cisco Systems, Inc. (NASD: CSCO).
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation from Forbes.
