Mega fund managers, those who manage between $100 billion and $1 trillion plus, are slightly bearish on the internet content group. During the June quarter, mega fund managers together sold a net $298 million from their prior $78.5 billion position in the group, selling $6.1 billion and buying $5.8 billion worth of stocks in the group. Furthermore, they hold $78.2 billion in the stock of internet content companies, about equal-weight versus the weighting of the group in the overall market.
A majority of the hedge fund and mutual fund managers included in this group manage well over $100 billion in U.S. equity assets, with some managing between $50 and $100 billion. The list includes prominent managers, such as Wellington Management ($1.6 trillion in total assets under management), Vanguard Group ($1.4 trillion), Fidelity Investments ($640 billion), T Rowe Price ($330 billion), and Goldman Sachs Asset Management ($580 billion), among others.
The following are the internet content stocks that these mega fund managers are most bullish and bearish about (see table):
Mega Funds Neutral on Google Inc. (NASDAQ:GOOG): As would be expected, almost all mega funds (thirty) have a position in GOOG, and together they hold $53.7 billion, or just under a third of the outstanding stock of the company. However, in the June quarter, mega funds unloaded a net $2.15 billion of GOOG stock. Major sellers included Capital Research Global Investors ($1.52 billion), Janus Capital Management ($1.44 billion), Ameriprise Financial ($328 million), Goldman Sachs Group ($233 million) and Wells Fargo & Co. ($217 million). Major holders of GOOG include Fidelity Investments ($8.92 billion), T Rowe Price ($5.49 billion), State Street Corp. ($5.29 billion), Vanguard Group (5.20 billion), Capital World Investors ($3.99 billion) and Barclays Global Investors ($3.38 billion).
Mega Funds Bullish on Yahoo Inc. (NASDAQ:YHOO): Almost all mega funds (twenty-eight) have a position in YHOO, and they are overweight the stock as together they hold $7.7 billion, or just under half of the company. In the June quarter, mega funds added a net $96 million in YHOO stock. Mega funds with the largest position in YHOO include Capital Research Global Investors ($1.3 billion), Capital World Investors ($1.15 billion), State Street Corp. ($761 million), Invesco Ltd. ($701 million) and Vanguard Group ($650 million).
Mega Funds Bullish on Baidu Inc. (NASDAQ:BIDU): Baidu Inc. ADS (BIDU) is a leading Chinese provider of internet search, targeted online advertising and other internet content services. Twenty-four mega funds together hold $9.02 billion of BIDU, or just over a quarter of the company, and they added a net $354 million during the June quarter. Mega funds with the largest position in BIDU include T Rowe Price ($2.53 billion), Fidelity Investments ($1.56 billion), Ameriprise Financial ($889 million), Capital Research Global Investors ($889 million), and Invesco Ltd. ($754 million).
Mega Funds Bullish on Sina Corp. (NASDAQ:SINA): SINA is a Chinese internet portal offering media content and services for China and global Chinese communities. Twenty-five mega funds together hold $1.76 billion, or just under 30% of the outstanding stock of SINA, adding a net $304 million during the June quarter. Mega funds with the largest position in SINA include T Rowe Price ($503 million), Capital Research Global Investors ($317 million), Wells Fargo & Co. ($172 million), Neuberger Berman Group ($170 million) and Fidelity Investments ($159 million).
Mega Funds Bearish on Netease Inc. (NASDAQ:NTES): NTES is a Chinese provider of an interactive online gaming community, internet portal and wireless value-added services. Eighteen mega funds hold $912 million, or just over 15% of the outstanding shares, and they cut a net $66 million in the June quarter. Major sellers included Capital Research Global Investors ($60 million) and Fidelity Investments ($40 million).
Mega Funds Neutral on Monster Worldwide Inc. (NYSE:MWW): MWW provides online employment, recruitment and career management services via monster.com and newspaper advertising. Twenty-three mega funds own $295 million, or just over 30% of the outstanding shares, shedding a net $39 million in the June quarter. Major holders include Capital Research Global Investors ($89 million), Vanguard Group ($66 million), State Street Corp. ($34 million) and Barclays Global Investors ($27 million).
Mega Funds Bullish on Ancestry.com Inc. (NASDAQ:ACOM): ACOM provides family history information via ancestry.com, allowing users to research and share information. Twenty-one guru funds hold $243 million, adding a net $56 million in the June quarter. Major holders include Vanguard Group ($44 million) and Wellington Capital Management ($42 million), and major buyers during the June quarter include T Rowe Price ($16 million), Ameriprise Financial ($10 million) and Wellington Capital Management ($10 million).
Mega Funds Bullish on AOL Inc. (NYSE:AOL): AOL provides online content and services to consumers, publishers and advertisers. Twenty-five mega funds hold $695 million, or over 40% of the outstanding shares, and they added a net $108 million during the June quarter. Major holders of AOL include Dodge & Cox ($174 million), Fidelity Investments ($137 million) and Capital Research Global Investors ($99 million).
Furthermore, as illustrated in the following table, gurus also have limited or no holding in, and hence are bearish on, Rediff.com India Ltd. (NASDAQ:REDF), an Indian provider of internet content, communications, and information services; Sify Technologies (NASDAQ:SIFY), an Indian provider of corporate network and data, internet access, and online portal services in India; and The9 Ltd. (NASDAQ:NCTY), a Chinese provider of subscription-based online gaming services for licensed and company-developed games via The9.com.
General Methodology and Background Information: The latest available institutional 13-F filings of over 30+ mega hedge fund and mutual fund managers were analyzed to determine their capital allocation among different industry groupings, and to determine their favorite picks and pans in each group. These mega fund managers number less than one percent of all funds and yet they control almost half of the U.S. equity discretionary fund assets. The argument is that mega institutional investors have the resources and the access to information, knowledge and expertise to conduct extensive due diligence in informing their investment decisions. When mega Institutional Investors invest and maybe even converge on a specific investment idea, the idea deserves consideration for further investigation. The savvy investor may then leverage this information either as a starting point to conduct his own due diligence.
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using SEC filings data, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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