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Hedge Funds Aren’t Crazy About Costco Wholesale Corporation (COST) Anymore



Is Costco Wholesale Corporation (NASDAQ:COST) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Costco Wholesale Corporation (NASDAQ:COST) shareholders have witnessed a decrease in hedge fund interest of late. Our calculations also showed that COST isn’t among the 30 most popular stocks among hedge funds (see the video at the end of this article).

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’ 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 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

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 view the recent hedge fund action regarding Costco Wholesale Corporation (NASDAQ:COST).

What have hedge funds been doing with Costco Wholesale Corporation (NASDAQ:COST)?

At the end of the second quarter, a total of 40 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in COST over the last 16 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with COST Positions

The largest stake in Costco Wholesale Corporation (NASDAQ:COST) was held by Berkshire Hathaway, which reported holding $1145.1 million worth of stock at the end of March. It was followed by Fisher Asset Management with a $776.5 million position. Other investors bullish on the company included Two Sigma Advisors, AQR Capital Management, and Citadel Investment Group.

Due to the fact that Costco Wholesale Corporation (NASDAQ:COST) has witnessed a decline in interest from hedge fund managers, it’s easy to see that there was a specific group of hedgies who were dropping their full holdings in the second quarter. Intriguingly, Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising close to $279.5 million in stock, and Brandon Haley’s Holocene Advisors was right behind this move, as the fund cut about $118.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds in the second quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Costco Wholesale Corporation (NASDAQ:COST) but similarly valued. We will take a look at Royal Bank of Canada (NYSE:RY), United Technologies Corporation (NYSE:UTX), Amgen, Inc. (NASDAQ:AMGN), and Eli Lilly and Company (NYSE:LLY). This group of stocks’ market values resemble COST’s market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RY,15,383122,-2 UTX,65,6543371,6 AMGN,42,2626039,-4 LLY,43,1872480,-1 Average,41.25,2856253,-0.25 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 41.25 hedge funds with bullish positions and the average amount invested in these stocks was $2856 million. That figure was $3254 million in COST’s case. United Technologies Corporation (NYSE:UTX) is the most popular stock in this table. On the other hand Royal Bank of Canada (NYSE:RY) is the least popular one with only 15 bullish hedge fund positions. Costco Wholesale Corporation (NASDAQ:COST) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on COST as the stock returned 9.3% during the same time frame and outperformed the market by an even larger margin. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

5 Most Popular Stocks Among Hedge Funds

Disclosure: None. This article was originally published at Insider Monkey.

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Boris Johnson sends unsigned letter to EU asking for Brexit delay




Prime Minister Boris Johnson sent an unsigned letter to the European Union requesting a delay to Britain’s exit from the bloc and also said he did not want the extension after his latest Brexit setback in parliament on Saturday.

Johnson had previously said he would rather be “dead in a ditch” than ask for any extension to the Oct. 31 deadline.

But he was compelled, by a law passed last month by opponents, to send a letter to the bloc asking to push back the deadline to Jan 31 after lawmakers thwarted his attempt to pass his EU divorce deal on Saturday.

A government source said Johnson sent a total of three letters to Donald Tusk, the president of the European Council: a photocopy of the text that the law, known as the Benn Act, forced him to write; a cover note from Britain’s EU envoy saying the government was simply complying with that law; and a third letter in which Johnson said he did not want an extension.

“I have made clear since becoming Prime Minister and made clear to parliament again today, my view, and the Government’s position, that a further extension would damage the interests of the UK and our EU partners, and the relationship between us,” Johnson said in the third letter, published on Twitter by the Financial Times’ Brussels correspondent.

Johnson, for whom delivering Brexit is key to his plan to hold an early election, said he was confident that the process of getting the Brexit legislation through Britain’s parliament would be completed before Oct. 31, according to the letter.

Tusk said he had received the request from Johnson.

“I will now start consulting EU leaders on how to react,” he said on Twitter.

French President Emmanuel Macron told Johnson that Paris needed swift clarification on the situation after Saturday’s vote, an official at the French presidency told Reuters.

“He signalled a delay would be in no one’s interest,” the official said.

However, it was unlikely that the EU’s 27 members states would refuse Britain’s delay request.

Johnson plan tipped on head

Johnson had hoped that Saturday would see recalcitrant lawmakers finally back the divorce deal he agreed with EU leaders this week and end three years of political deadlock since the 2016 referendum vote to leave the bloc.

Instead, lawmakers voted 322 to 306 in favour of an amendment that turned Johnson’s planned finale on its head by obliging him to ask the EU for a delay, and increasing the opportunity for opponents to frustrate Brexit.

Johnson has previously promised that he would take the country out of the bloc on Oct. 31, without explaining how he would do this while also complying with the Benn Act.

“I will not negotiate a delay with the EU and neither does the law compel me to do so,” he told parliament after lawmakers backed the amendment on Saturday.

Opposition politicians accused him of believing he was above the law.

“Johnson is a Prime Minister who is now treating Parliament and the Courts with contempt,” John McDonnell, the opposition Labour Party’s finance spokesman said.

“His juvenile refusal to even sign the letter confirms what we always suspected that Johnson with his arrogant sense of entitlement considers he is above the law and above accountability.”

Scotland’s highest court is due to consider on Monday a legal challenge that had sought to force Johnson to comply with the Benn Act. The court said earlier this month that government lawyers had given formal legal statements that he would abide by the Benn Act and it would be a serious matter if he did not.

“Boris Johnson promised #Scottish court he would comply with #BennAct & not seek to frustrate it. Looks like he’s breaking both promises,” Joanna Cherry, a Scottish National Party lawmaker involved in the case said on Twitter.


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Trump Admin Officials Line Up To Testify About Giuliani And Pals



A bevy of current and former Trump administration officials have come forward to testify against the president.
They claim President Donald Trump used Rudy Giuliani and others to gut and politicize federal agencies to suit his needs.
According to Business Insider, chief among those is the US State Department.
Testimony reveals they were used to circumvent career diplomats and carry out a shadow foreign-policy agenda with respect to Ukraine.
At least eight officials have, or are scheduled to, testify. One is Marie Yovanovitch, the US’s former ambassador to Ukraine.
Also, Fiona Hill, former WH senior director for Russian and Eurasian affairs.
And Michael McKinley, a former senior adviser to Secretary of State Mike Pompeo.
Finally, Kurt Volker, the US’s former special representative to Ukraine is also scheduled to testify.

This video was produced by YT Wochit Vote It using


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الحصاد الرياضي من بي ان سبورت bein sports news ليوم [19/10/2019] أخبار سوق الانتقالات



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