Several investors are of the opinion that Hedge Funds are not that useful as they sometimes fail to overcome index fund portfolios. But hedge funds are more oriented towards providing investors with risk-aversion reports and risk-adjustment mechanisms rather than riding the tide. They do not follow the equity market’s ups and downs. Certain hedge funds submit analysis of companies that attract smart money investments. Smart money is the capital invested in the market by institutional investors or firms, banks and so on that show a higher chance of success.
Is NASDAQ: ZM stocks the correct choice for investors right now? Zoom Video Communications, Inc. was present in 48 long hedge funds’ list during 2020 Q2. The earlier position was 47 but ZM stocks moved by 1 recently. According to the list of most popular stocks proposed by several hedge funds, ZM stocks do not fall under the top 30.
Over the past few years, the trust towards hedge funds have gradually decreased as their hedged returns do not match up to the stock market indices. However, hedge funds continue to remain a crucial indicator that investors should follow in order to make long-term benefits.
Is ZM Stock A Good Choice For Investors Right Now?
By the 3rd quarter of the current fiscal year, ZM stocks were long in 48 of the total number of hedge funds. This is 2% up from the previous position. Most hedge funds have a swirling interest in ZM stocks. But even without the expected popularity of ZM stocks, hedge funds still show an above-average interest in Zoom Video Communications, Inc. several hedge funds have recently moved up their investments in the company that can corroborate with this analysis. Investors can take a peek into the recent ZM stock-related activities by hedge funds to get a hint of how Zoom Video Communications stock might be the ideal stock for them right now even though the top 30 list doesn’t include ZM stocks.
Hedge Funds Right About ZM Stocks
According to recent reports, several hedge funds like Renaissance Technologies, Hillhouse Capital Management, Coatue Management, Rock Capital Management, Lone Pine Capital, Abdiel Capital Advisors and so on have gone bullish in ZM stocks. All these firms that hold prime stocks in Zoom Video Communications, Inc. have levelled up their investment in the company.
Hedge funds can be valuable for investors to determine long-term investment plans. Among the stocks that were tagged as the top 10 stocks, they outperformed S&P 500 by approximately 10.1% and made a gain of about 30% in the past year. Hedge funds seem to be right about ZM stocks as well as the company has been returning 101.8% since the end of the second quarter of 2020, outperforming the market.