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Netflix, Inc. (NFLX): Five Hedge Funds Bet Big On Stock – Should You?

Netflix, Inc. (NASDAQ:NFLX)

John Griffin’s Blue Ridge Capital, Steve Cohen’s Point72 Asset Management, Palestra Capital Management, PEAK6 Capital Management, and Jericho Capital Asset Management are betting big on Netflix, Inc. (NASDAQ:NFLX). The hedge funds started new positions in the online streaming service during the first quarter of 2016, according to latest 13F filings.

On Monday, Netflix announced that it will produce an original content for the Indian market. The company has started working on its first drama series.

Netflix, Inc. (NASDAQ:NFLX)

Hedge Funds’ Moves

In its latest 13F filing, Blue Ridge Capital, managed by John Griffin, disclosed holding 1.45 million shares of Netflix. The stake was valued at around $147.7 million as of the end of March.

Point72 Asset Management also sees value in the online streaming company. The investor opened a new position in the company during the quarter, holding 1.82 million shares, worth $186.2 million.

The latest 13F submitted to the U.S. Securities and Exchange Commission by Palestra Capital Management showed that the fund holds 400,500 shares in the online streaming company. The holding is valued at about $41 million.

PEAK6 Capital Management also opened a position in the company during the first quarter. The investor owns 118,690 shares, valued at around $12.1 million.

Netflix To Produce Original Content in India

Netflix announced that it is producing its first original series in India. The online streaming service’s first production, a crime drama series, is adaptation of the 2006 best-seller “Sacred Games” by Vikram Chandra. It will shot on location in India and produced by Phantom Films, a local production company, CS Monitor reported.

Netflix announced on Monday. Mr. Chandra’s novel, a sprawling thriller set in Mumbai’s criminal underworld, focuses on a Sikh police detective’s pursuit of India’s “most wanted gangster.”

The online streaming company expanded to more than more than 130 new countries, including India. The online streaming service has 81 million customers across 190 countries.

“Over the last few years, I’ve watched with great excitement and pleasure as Netflix has transformed narrative television with its ground-breaking, genre-bending shows,” Chandra said in a statement. “I’m confident that all the color and vitality and music of the fictional world I’ve lived with for so long will come fully alive on the large-scale canvas provided by Netflix.”

Netflix To Become Exclusive Pay TV Home

As we previously reported, investors seem to be happy with an announcement that Netflix will start streaming all films and television series from Walt Disney Co (NYSE:DIS) from this September. The company’s stock has gained 10.9% during the past 30 days.

At the end of last month, Netflix announced that it will start streaming the Disney films in September. The agreement, which includes the latest films and shows from Marvel, Lucasfilm and Pixar, will make Netflix the exclusive U.S. pay TV home of the Disney.

“From September onwards, Netflix will become the exclusive US pay TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar,” the company said a statement.

The online streaming company will stream Jurassic Park and Spotlight in June, and The Big Short and Back to the Future in July. The company will gain The Fast & The Furious and The Wedding Planner in August.

The deal, which will reportedly cost the steaming service $300 million per year, is part of Netflix’s efforts to become exclusive and original content provider. As a result of this deal, paid TV networks such as HBO and Starz will not be able to get their hands on other Disney productions as well, The Markets Daily reported.

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