>>> Consensus BUY
* StoneCo (STNE): For the second consecutive quarter, there weren’t many consensus new buys. The majority of the names on this list are either initial public offerings (IPOs) or stocks that don’t have as high of a consensus rating as usual. StoneCo falls under the former category as funds such as Lone Pine Capital, Tiger Global, and Berkshire Hathaway show positions after the company’s IPO. That said, some firms had already invested in the company back when it was still private. StoneCo is a Brazilian online payments gateway.
* Tencent Music (TME): This is another IPO that hedge funds show a stake in. Managers including Hound Partners, Coatue Management, and Tiger Global all owned shares at the end of 2018. This is basically the ‘Spotify of China,’ or a music streaming service in the world’s largest country.
* Shutterfly (SFLY): Funds that show new positions in Shutterfly include Coatue Management, Maverick Capital, and Greenlight Capital. The company produces personalized photo-based products and services. Shares nosedived from $100 to $35 in 2018 but have since rebounded to $46. Under normal circumstances, a stock with this low of a consensus rating would not be included on this list, but there basically aren’t any other stocks that many funds agreed on.
* Shake Shack (SHAK): The same can be said of this stock. Funds such as Coatue, Maverick, and Bridger Capital all show new positions. The burger joint has been expanding internationally and has touted China as a big opportunity. They’ve been encouraged by their few stores in Hong Kong that are consistently quite busy.
>>> Consensus Increased Positions
* Alibaba (BABA): This is the third consecutive quarter this stock lands on this list. Duquesne Family Office, Farallon Capital, Maverick, Coatue, and Viking Global all added to their positions. The stock has been negative on worries over a weakening Chinese economy and the U.S. / China trade war. However, funds have utilized that weakness to bolster their positions.
* Microsoft (MSFT): This is now the fourth consecutive quarter this stock has graced this list. Funds buying in the fourth quarter include Hound Partners, Farallon Capital, Duquesne, Tiger Global, and Viking. While ‘FANG’ stocks get all the attention, Microsoft shares have performed quite well on their own the past few years and CEO Satya Nadella has really turned the company in the right direction.
* Facebook (FB): Shares of the social media giant finally got cheap enough to entice many managers to buy. Maverick, Hound, Farallon, Coatue, Viking, Tiger Global, and Lone Pine all bought shares. Waves of negative publicity and privacy concerns hit Facebook hard in 2018. Due to this, their capital expenditures spiraled to $14 billion for the year and are anticipated to rise further to $18 billion in 2019. That said, the company is a cashflow machine and also has $41 billion in net cash.
* Amazon (AMZN): Shares of the dominant US e-commerce giant also sold-off significantly during the fourth quarter. A decrease of 34% was deemed a significant opportunity by the likes of Pennant Capital, Coatue, Viking, and Lone Pine.
>>> Consensus Sold Postions
* Electronic Arts (EA): This is really the only stock that was truly a consensus liquidation during the fourth quarter. Duquesne, Lone Pine, and Tiger Management are some of the managers that fully exited their previous stakes. Shares of the video game producer have not performed well over the past year. Some bulls had previously invested under the thesis that the game makers would be the largest beneficiaries in the rise of esports professional gaming leagues, video game streaming, and other trends in the industry.
* Express Scripts (former ticker symbol: ESRX) & Aetna (former ticker: AET): These two stocks were both involved in mergers that closed during the fourth quarter, and as such shares no longer trade. CVS Health (CVS) acquired Aetna, while Cigna (CI) acquired Express Scripts (ESRX). Some managers who previously owned ESRX or AET now may show corresponding ‘new’ positions in CI or CVS, depending on what they elected to do with the position.
>>> Consensus Decreased Positions
* Liberty Global (LBTYK): This European cable giant lands on this list for the fourth straight quarter. Funds that sold some shares include Maverick, Glenview Capital, Farallon, Brave Warrior Advisors, and SPO Advisory.
* Charter Communications (CHTR): It seems hedge funds were out reducing exposure to John Malone’s cable empire during Q4 as both LBTYK and CHTR land on this list. Managers that reduced exposure to the US broadband company include Pennant Capital, Bridger, SPO, Faralllon, and Berkshire Hathaway. The company has been rolling out a mobile service to complement its existing television, broadband, and home phone offerings in order to reduce churn
* DowDuPont (DWDP): Hedge funds that took down their DWDP position sizing during the fourth quarter but still retain positions were Omega Advisors, Viking Global, Glenview Capital, and Third Point.
* PayPal (PYPL): Shares of this online payments giant were sold by Duquesne, Coatue, Third Point, and Lone Pine during the quarter. Over the past few years, this stock has performed quite well, but in 2018 it largely traded sideways.