In this article, we discuss the 10 stocks that Israel Englander has PUT positions on. If you want to read about some more stocks that Englander has PUT positions on, go directly to Billionaire Englander’s 5 Biggest PUT Positions.
The hedge fund industry is worth more than $4 trillion, according to conservative estimates, and Millennium Management, the hedge fund of billionaire Israel Englander, accounts for more than $198 billion of this. This amount is staggering when compared to the $35 million that Englander had when he began his hedge fund in 1989. Englander has been one of the most successful fund managers on Wall Street for the past few decades, averaging returns of more than 14% per year, dwarfing numbers from the S&P 500.
Israel Englander began his career in the stock world right out of college – he graduated from New York University in 1970 with an undergraduate degree in finance – by working as a specialist clerk for the American Stock Exchange. By 1977, he had formed a floor brokerage house. Englander continued as a broker until the late 1980s, starting his hedge fund in 1989 with around two decades of investing experience under his belt. Englander partnered with Ronald Shear on the $35 million investment in the fund, gathered in part by putting up millions in seed money as a personal contribution to the business.
Englander is an old school investor who leverages strategies like statistical arbitrage, fundamental long-short pairing, merger arbitrage, and convertible arbitrage to generate returns. Englander uses hundreds of different trading teams for the purpose – a report in the Financial Times claims that his hedge fund presently employs over 300 trading teams – that makes millions of trades in a single day. Per his own admission, his teams might make as much as 2 million trades every day. At any given time, his hedge fund has thousands of positions in equities. Englander has amassed a staggering fortune through his fund, per reports, his personal net worth is close to $12 billion.
Latest 13F filings show that the top ten holdings in the equity portfolio of Millennium Management are concentrated in the technology and health domains. They account for more than 21% of the entire portfolio. Between June and September this year, the value of the equity portfolio has decreased by about $5 billion. Englander, however, has doubled down on his bets against big tech firms like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT). During this period, the fund has made new purchases in 869 stocks, sold out of 853 equities, made additional purchases in 2,354 and reduced holdings in 2,332 companies.
Englander manages one of the most diverse portfolios on Wall Street. Sometimes, interpreting his positions can be extremely tricky. For example, recent filings reveal that Englander has PUT positions on many famous technology stocks, most of which have been discussed below. However, it is also important to clarify that before readers take too much from these, they should also consider that he has sizeable bullish calls on these equities in the same portfolio. As a general rule of the thumb, when a trader does this, it is usually protection against some downside. It is not easy to speculate on this since the strike prices of PUT options are not public. At the end of the day, combining the bearish and bullish calls, it is likely that in this scenario, the trader still walks away with a tidy profit from these bets.
Our Methodology
These were picked from the investment portfolio of Millennium Management at the end of the third quarter of 2023. The stocks in which the firm owns PUT options were considered. In order to provide readers with some context for their investment choices, the analyst ratings for the stocks are also mentioned. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the second quarter of 2023.
Israel Englander of Millennium Management
Billionaire Englander’s Biggest PUT Positions
10. Palo Alto Networks, Inc. (NYSE:PANW) PUT
Number of Hedge Fund Holders: 83
Palo Alto Networks, Inc. (NYSE:PANW) provides cybersecurity solutions. Latest data shows that Millennium Management owned PUT options on over 2.7 million shares of Palo Alto Networks, Inc. (NYSE:PANW) at the end of the third quarter of 2023 worth $647 million, representing 0.32% of the portfolio.
On November 16, investment advisory Citi maintained a Buy rating on Palo Alto Networks, Inc. (NYSE:PANW) stock and lowered the price target to $280 from $285, noting the firm’s first quarter into a fresh three-year plan was accentuated by a billings miss and reduced outlook.
At the end of the second quarter of 2023, 83 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Palo Alto Networks, Inc. (NYSE:PANW), compared to 87 in the previous quarter worth $3.9 billion.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), andMicrosoft Corporation (NASDAQ:MSFT), Palo Alto Networks, Inc. (NYSE:PANW) is one of the stocks that Israel Englander is betting against.
In its Q2 2023 investor letter, TimesSquare Capital Management, an asset management firm, highlighted a few stocks and Palo Alto Networks, Inc. (NYSE:PANW) was one of them. Here is what the fund said:
“Another area of strength was the Information Technology sector. At the lead was a 28% gain from Palo Alto Networks, Inc. (NASDAQ:PANW). A global provider of network and cloud-based cybersecurity systems, Palo Alto’s revenues and earnings were higher than anticipated, which led management to increase its guidance for the balance of the fiscal year. Palo Alto’s billings rates grew faster than expected—especially for its Next-Gen Security platform—while at the same time the company’s margins strengthened. As its shares climbed, we trimmed our position.”
9. Advanced Micro Devices, Inc. (NASDAQ:AMD) PUT
Number of Hedge Fund Holders: 112
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. Latest data shows that Millennium Management owned PUT options on over 7.1 million shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter of 2023 worth $735 million, representing 0.37% of the portfolio.
On November 13, investment advisory Roth MKM initiated coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) stock with a Buy rating and a price target of $125, noting the firm’s differentiated portfolio of high-performance computer and networking processors and accelerators represents a strong investment opportunity.
At the end of the second quarter of 2023, 112 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 91 in the previous quarter worth $4.8 billion.
8. Exxon Mobil Corporation (NYSE:XOM) PUT
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas firm. Latest data shows that Millennium Management owned PUT options on over 6.5 million shares of Exxon Mobil Corporation (NYSE:XOM) at the end of the third quarter of 2023 worth $773 million, representing 0.39% of the portfolio.
On November 14, investment advisory Mizuho maintained a Buy rating on Exxon Mobil Corporation (NYSE:XOM) stock and lowered the price target to $133 from $139, citing reduced downstream estimates for the price update.
At the end of the second quarter of 2023, 71 hedge funds in the database of Insider Monkey held stakes worth $3 billion in Exxon Mobil Corporation (NYSE:XOM), compared to 73 in the previous quarter worth $4.3 billion.
7. Alphabet Inc. (NASDAQ:GOOG) PUT
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology firm. Regulatory filings reveal that Millennium Management owned PUT options on over 11.7 million shares of Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter of 2023 worth $1.5 billion, representing 0.77% of the portfolio.
On November 16, investment advisory Wells Fargo maintained an Equal Weight rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $129 from $126.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 43 million shares worth more than $5.7 billion.
In its Q3 2023 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“As for other quarterly contributors, Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms, Inc., (META) added to their exceptional year-to-date returns. Meta Platforms and Alphabet were the true year-to-date standouts. After steep declines in 2022, both stocks rebounded sharply due to a combination of solid fundamentals, disciplined operational execution, and improved sentiment. Despite outsized gains and attention, we think both Alphabet and Meta remain undervalued.”
6. NVIDIA Corporation (NASDAQ:NVDA) PUT
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Latest data shows that Millennium Management owned PUT options on 4.1 million shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of the third quarter of 2023 worth $1.7 billion, representing 0.90% of the portfolio.
On October 20, investment advisory KeyBanc maintained an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) stock and lowered the price target to $650 from $750, noting that the broad-based demand trends remain weak as China sees limited signs of a recovery.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 20 million shares worth more than $8.8 billion.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks that Israel Englander is betting against.
In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“At the portfolio level, the positive fundamental trends we noticed in the second quarter continued into the third quarter as well – many of our companies are reporting stability or slight improvement in business trends. Weighted average 2023 revenue growth expectations for the portfolio were up 3.8% during the third quarter or up 0.8% if we exclude NVIDIA. We wrote at length about NVIDIA earlier this year, but it is worth mentioning that the company has continued to exceed its own projections and the Street’s most optimistic expectations. After raising its revenue and EPS guidance for 2023 by 40% and 69%, respectively, following its last quarter, NVIDIA increased it further by 26% and 35%, respectively, after reporting the most recent one. Consensus expectations now call for revenues to grow 94% this year, while earnings per share are expected to increase by 192%. You may have seen these kinds of growth rates before, but we doubt you saw them from a company generating $50 billion in revenues. The skeptics who continue to question and doubt the accelerating demand for Generative artificial intelligence forgot to tell NVIDIA about it. But we digress…back to the portfolio…profit expectations have risen even faster than revenues and were up 11% during the third quarter (or up 7.8% ex-NVIDIA) with margin expectations up 149bps (107bps ex-NVIDIA). So, broadly speaking, our companies are seeing improvement in overall business trends, which flow through to their bottom lines, driving higher margins. We are also starting to see the benefits of leaner cost structures and more disciplined capital allocation compared to two or three years ago when capital was both cheaper and more readily available.”
Click to continue reading and see Billionaire Englander’s 5 Biggest PUT Positions.
Suggested Articles:
- 15 Most Advanced Countries in the World
- 10 Stocks Under $50 To Buy
- 15 Most Famous Investment Gurus of All Time
Disclosure. None. Billionaire Englander’s Biggest PUT Positions is originally published on Insider Monkey.