Following the announcement that Disney intends to purchase most of the assets of 21st Century Fox, eVestment took a closer look at institutional investor exposure to those two companies and other major media companies in the just released eVestment Q3 2017 Institutional Stock Ownership Report.
Among firms in the U.S. large cap media sub-sector, Disney is the most underweight stock among active U.S. large cap equity strategies with an average differential of -0.26% against the benchmark while 21st Century Fox was held at equal weight. Managers have been underweight Disney over the past two years, however, their relative weight to Disney against the benchmark has been rising incrementally since Q3 2016 from -0.32% to -0.26%. The report also looks at how far over- and underweight similar media firms are, including Comcast, Time Warner, Charter Communications and CBS Corp., as M&A activity in and regulatory scrutiny of the media space ramps up.
The eVestment Stock Ownership Report looks at institutional investor stock ownership trend based on data provided to eVestment by institutional asset managers working on behalf of those investors. The data is updated quarterly and the report looks at the overall top 20 institutional investor stock holdings and at holdings across several categories of stocks and geographies, including U.S. large cap value, U.S. mid cap core, all UK equity, all Japan equity and all emerging markets equity.
Other interesting points from the report include:
- Google parent company Alphabet at No. 1, Microsoft at No. 2 and Apple at No. 3 retained the top three spots on the overall institutional stock ownership list. While moving up and down over the quarters, these firms have remained the top three firms owned by institutional investors all year.
- Oracle cracked the top 20 list in Q3 in the No. 20 spot, while The Home Depot, at No. 19 in Q2 2017, dropped off the top 20 list.
- Active large cap growth managers increased their financial stocks exposure by +0.73% Q/Q compared to +0.29% for the Russell 1000 Growth index.
- Diageo and Rio Tinto entered the U.K. manager top 10 holdings list in Q3 2017 displacing RELX and Lloyds Banking Group.
- Japanese equity managers’ exposure to the producer durables sector increased again in Q3 2017 by +0.86%. In keeping with the broad sector gains, Mitsubishi Corp entered the top 10 holdings list displacing Sony.
To download a full copy of the report, please click here.