The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) investors should be aware of an increase in enthusiasm from smart money recently. Spirit AeroSystems Holdings, Inc. (NYSE:SPR) was in 38 hedge funds’ portfolios at the end of September. The all time high for this statistic is 50. There were 35 hedge funds in our database with SPR holdings at the end of June. Our calculations also showed that SPR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
John Overdeck of Two Sigma Advisors
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 check out the key hedge fund action regarding Spirit AeroSystems Holdings, Inc. (NYSE:SPR).
Do Hedge Funds Think SPR Is A Good Stock To Buy Now?
At third quarter’s end, a total of 38 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the previous quarter. By comparison, 31 hedge funds held shares or bullish call options in SPR a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Sculptor Capital held the most valuable stake in Spirit AeroSystems Holdings, Inc. (NYSE:SPR), which was worth $131.7 million at the end of the third quarter. On the second spot was Scopia Capital which amassed $124.2 million worth of shares. Redwood Capital Management, Maple Rock Capital, and Two Sigma Advisors 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 Scopia Capital allocated the biggest weight to Spirit AeroSystems Holdings, Inc. (NYSE:SPR), around 13.41% of its 13F portfolio. Mountaineer Partners Management is also relatively very bullish on the stock, earmarking 7.96 percent of its 13F equity portfolio to SPR.
Now, some big names have been driving this bullishness. Hill City Capital, managed by Herbert Frazier, assembled the biggest position in Spirit AeroSystems Holdings, Inc. (NYSE:SPR). Hill City Capital had $21.9 million invested in the company at the end of the quarter. Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors also made a $11 million investment in the stock during the quarter. The other funds with brand new SPR positions are Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital), Robert Vincent McHugh’s Jade Capital Advisors, and Robert Bishop’s Impala Asset Management.
Let’s go over hedge fund activity in other stocks similar to Spirit AeroSystems Holdings, Inc. (NYSE:SPR). These stocks are New Relic Inc (NYSE:NEWR), Tripadvisor Inc (NASDAQ:TRIP), National Vision Holdings, Inc. (NASDAQ:EYE), Lancaster Colony Corporation (NASDAQ:LANC), Simpson Manufacturing Co, Inc. (NYSE:SSD), Shoals Technologies Group, Inc. (NASDAQ:SHLS), and Papa John’s International, Inc. (NASDAQ:PZZA). All of these stocks’ market caps match SPR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NEWR | 30 | 1406588 | 1 |
| TRIP | 33 | 831284 | -3 |
| EYE | 16 | 397802 | -3 |
| LANC | 21 | 251251 | 3 |
| SSD | 19 | 177824 | 0 |
| SHLS | 13 | 63890 | 1 |
| PZZA | 33 | 744692 | 3 |
| Average | 23.6 | 553333 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.6 hedge funds with bullish positions and the average amount invested in these stocks was $553 million. That figure was $759 million in SPR’s case. Tripadvisor Inc (NASDAQ:TRIP) is the most popular stock in this table. On the other hand Shoals Technologies Group, Inc. (NASDAQ:SHLS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is more popular among hedge funds. Our overall hedge fund sentiment score for SPR is 80.8. 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. Unfortunately, SPR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on SPR were disappointed as the stock returned -0.8% since the end of the third quarter (through 1/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as all of these stocks already outperformed the market since 2019.
Follow Spirit Aerosystems Holdings Inc. (NYSE:SPR)
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Disclosure: None. This article was originally published at Insider Monkey.
