Top 10 Chicago Companies Hedge Funds Are Buying

Investing, Investing Data, Investments

Chicago’s economy has always been well diversified and changing, with sectors ranging from food processing to finance. More recently, newcomers such as Orbitz, Groupon and other Internet companies have joined the mix, adding to Chicago’s growing tech sector.

But while Chicago is trying to bill itself to the media as the next big tech startup hub, a snapshot of the first quarter shows that giant companies headquartered in Chicago are continuing to dominate the hedge fund landscape.  Hedge funds and institutional money managers are still betting on companies in the more traditional sectors in the Windy City.

Key findings:

  • The Boeing Company (BA) was the most popular Chicago company that funds bought in the first quarter of this year as it saw an inflow of $3.8 billion net worth of shares—which amounts to 4.8% of the company’s market capitalization.
  • Industrial goods was the most invested sector in Chicago, followed by services and financials.
  • Groupon (GRPN) was the most popular Chicago tech company that funds invested in and placed in the overall top ten Chicago companies that funds bought.

Top Stocks Lead Industrials, Services and Financial Sectors

By researching the most recent 13F filings, NerdWallet found Chicago companies held by institutional money managers and hedge funds from the fourth quarter of 2013 and first quarter of 2013. By calculating the change in shares and multiplying it by price, we found the companies with the highest inflows.

With nearly $4 billion invested in Boeing, the industrials sector was the most popular sector in Chicago during the first quarter. United Continental Holdings, which has the most destinations in the world than any other airline, was the second most popular stock and led the services sector with a $1.6 billion inflow. General Growth Properties led the financial sector with nearly a billion invested in the real estate investment trust.

Groupon, which is up 82% YTD as of the time this study was published, led the tech sector, followed by consumer goods and basic materials. Shares of the deal site have surged since the departure of CEO Andrew Mason February of this year.

Find Your Own Investment Ideas

To compile our data, NerdWallet examined 13F filings that institutional money managers, including hedge funds, must submit 45 days after the end of every quarter. The filings report on the fund’s long positions and options but generally excludes short positions. Although the filings may go out of date, they can still provide a good snapshot of trends and trading strategies that can be mirrored by retail investors.

Researching and analyzing the data from the 13F filings can be time-consuming and overwhelming. To address this issue, NerdWallet Investing has created a fund holdings screener that allows users to easily find current fund investments by a variety of fields, such as:

  •  The size and diversity of the funds
  • A fund’s conviction in the holding; the percentage of the fund invested in that security
  • A fund’s ownership of the holding; the percentage of shares outstanding it has purchased
  • The security’s industry
  • The security’s breadth; the number of funds which are currently invested in it
  • And many more.

Additional Hedge Fund Resources

  1. Tool: Hedge Fund Tracker
  2. Guide: Find New Investment Ideas Through Hedge Fund Filings
  3. Further Details on 13F Filings

About NerdWallet Investing

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