Hedge Funds Have Never Been This Bullish On Moody’s Corporation

Is Moody’s Corporation (NYSE:MCO) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.

Moody’s Corporation has seen an increase in activity from the world’s largest hedge funds in recent months. Overall hedge fund sentiment towards the stock is at its all-time high.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 25.7% through September 30, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

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Unlike some fund managers who are betting on Dow reaching 40000 in a year, our long-short investment strategy doesn’t rely on bull markets to deliver double-digit returns. We only rely on hedge fund buy/sell signals. We’re going to take a gander at the latest hedge fund action surrounding Moody’s Corporation.

What have hedge funds been doing with Moody’s Corporation?

At the end of the second quarter, a total of 39 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 15% from the previous quarter. On the other hand, there were a total of 30 hedge funds with a bullish position in MCO a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

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