The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. What do these smart investors think about Bath & Body Works Inc. (NYSE:BBWI)?
Is Bath & Body Works Inc. (NYSE:BBWI) a good investment right now? Investors who are in the know were buying. The number of long hedge fund positions improved by 3 recently. Bath & Body Works Inc. (NYSE:BBWI) was in 56 hedge funds’ portfolios at the end of September. The all time high for this statistic is 59. Our calculations also showed that BBWI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we’re going to take a look at the key hedge fund action regarding Bath & Body Works Inc. (NYSE:BBWI).
John Armitage of Egerton Capital
Do Hedge Funds Think BBWI Is A Good Stock To Buy Now?
At third quarter’s end, a total of 56 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from one quarter earlier. On the other hand, there were a total of 45 hedge funds with a bullish position in BBWI a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Lone Pine Capital held the most valuable stake in Bath & Body Works Inc. (NYSE:BBWI), which was worth $1531.6 million at the end of the third quarter. On the second spot was Egerton Capital Limited which amassed $889.1 million worth of shares. D1 Capital Partners, Melvin Capital Management, and Steadfast Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Barington Capital Group allocated the biggest weight to Bath & Body Works Inc. (NYSE:BBWI), around 26.19% of its 13F portfolio. Makaira Partners is also relatively very bullish on the stock, earmarking 17.97 percent of its 13F equity portfolio to BBWI.
As aggregate interest increased, key money managers were breaking ground themselves. Lone Pine Capital, initiated the most outsized position in Bath & Body Works Inc. (NYSE:BBWI). Lone Pine Capital had $1.5316 billion invested in the company at the end of the quarter. John Armitage’s Egerton Capital Limited also made a $889.1 million investment in the stock during the quarter. The following funds were also among the new BBWI investors: Daniel Sundheim’s D1 Capital Partners, Gabriel Plotkin’s Melvin Capital Management, and Robert Pitts’s Steadfast Capital Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Bath & Body Works Inc. (NYSE:BBWI) but similarly valued. These stocks are Full Truck Alliance Co. Ltd. (NYSE:YMM), Brookfield Infrastructure Partners L.P. (NYSE:BIP), Liberty Global plc (NASDAQ:LBTYA), Signature Bank (NASDAQ:SBNY), PPD, Inc. (NASDAQ:PPD), EXACT Sciences Corporation (NASDAQ:EXAS), and Markel Corporation (NYSE:MKL). This group of stocks’ market valuations are closest to BBWI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| YMM | 13 | 263866 | 13 |
| BIP | 15 | 104470 | -1 |
| LBTYA | 34 | 791291 | 4 |
| SBNY | 46 | 950619 | 3 |
| PPD | 37 | 1890261 | 0 |
| EXAS | 40 | 1984372 | 5 |
| MKL | 25 | 689937 | -8 |
| Average | 30 | 953545 | 2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $954 million. That figure was $6557 million in BBWI’s case. Signature Bank (NASDAQ:SBNY) is the most popular stock in this table. On the other hand Full Truck Alliance Co. Ltd. (NYSE:YMM) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Bath & Body Works Inc. (NYSE:BBWI) is more popular among hedge funds. Our overall hedge fund sentiment score for BBWI is 86.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on BBWI as the stock returned 19.4% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Bath & Body Works Inc. (NYSE:BBWI)
Follow Bath & Body Works Inc. (NYSE:BBWI)
Suggested Articles:
- 10 Best Beverage Stocks To Buy Now
- 15 Biggest Wholesale Companies In The World
- 15 Biggest Oil Refining Companies
Disclosure: None. This article was originally published at Insider Monkey.
