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. In this article we are going to take a look at smart money sentiment towards Covetrus, Inc. (NASDAQ:CVET).
Covetrus, Inc. (NASDAQ:CVET) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 24. CVET shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 18 hedge funds in our database with CVET holdings at the end of June. Our calculations also showed that CVET isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Israel Englander of Millennium Management
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. Now let’s analyze the recent hedge fund action surrounding Covetrus, Inc. (NASDAQ:CVET).
Do Hedge Funds Think CVET Is A Good Stock To Buy Now?
At third quarter’s end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CVET over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Freshford Capital Management held the most valuable stake in Covetrus, Inc. (NASDAQ:CVET), which was worth $39.8 million at the end of the third quarter. On the second spot was Rock Springs Capital Management which amassed $29.5 million worth of shares. Millennium Management, D E Shaw, and Renaissance Technologies 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 Freshford Capital Management allocated the biggest weight to Covetrus, Inc. (NASDAQ:CVET), around 5.68% of its 13F portfolio. Rock Springs Capital Management is also relatively very bullish on the stock, earmarking 0.62 percent of its 13F equity portfolio to CVET.
Now, specific money managers were breaking ground themselves. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the most outsized position in Covetrus, Inc. (NASDAQ:CVET). Marshall Wace LLP had $6 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also made a $2.5 million investment in the stock during the quarter. The following funds were also among the new CVET investors: Jinghua Yan’s TwinBeech Capital, John Overdeck and David Siegel’s Two Sigma Advisors, and Mika Toikka’s AlphaCrest Capital Management.
Let’s now review hedge fund activity in other stocks similar to Covetrus, Inc. (NASDAQ:CVET). We will take a look at Fulton Financial Corp (NASDAQ:FULT), Privia Health Group Inc. (NASDAQ:PRVA), Pacira Biosciences Inc (NASDAQ:PCRX), Arcus Biosciences, Inc. (NYSE:RCUS), Albany International Corp. (NYSE:AIN), 21Vianet Group Inc (NASDAQ:VNET), and Opko Health Inc. (NYSE:OPK). This group of stocks’ market values match CVET’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FULT | 14 | 53970 | 3 |
| PRVA | 12 | 83917 | 12 |
| PCRX | 24 | 425603 | 1 |
| RCUS | 21 | 573893 | -1 |
| AIN | 17 | 38508 | 5 |
| VNET | 16 | 173326 | -7 |
| OPK | 12 | 19201 | -6 |
| Average | 16.6 | 195488 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.6 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $131 million in CVET’s case. Pacira Biosciences Inc (NASDAQ:PCRX) is the most popular stock in this table. On the other hand Privia Health Group Inc. (NASDAQ:PRVA) is the least popular one with only 12 bullish hedge fund positions. Covetrus, Inc. (NASDAQ:CVET) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CVET is 71.8. 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 gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on CVET as the stock returned 10.1% since the end of Q3 (through 12/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Covetrus Inc. (NASDAQ:CVET)
Follow Covetrus Inc. (NASDAQ:CVET)
Suggested Articles:
- 20 Best Cities To Find A Husband
- 16 Best Luxury Resorts in Caribbean in 2021
- Top 10 Energy Sector Stocks for 2021
Disclosure: None. This article was originally published at Insider Monkey.
