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. We at 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. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Global Payments Inc (NYSE:GPN) and determine whether the smart money was really smart about this stock.
Global Payments Inc (NYSE:GPN) was in 68 hedge funds’ portfolios at the end of September. The all time high for this statistic is 68. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. GPN has seen an increase in enthusiasm from smart money of late. There were 66 hedge funds in our database with GPN holdings at the end of June. Our calculations also showed that GPN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Larry Robbins of Glenview Capital
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 take a look at the key hedge fund action encompassing Global Payments Inc (NYSE:GPN).
Do Hedge Funds Think GPN Is A Good Stock To Buy Now?
At the end of September, a total of 68 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards GPN over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Global Payments Inc (NYSE:GPN) was held by Orbis Investment Management, which reported holding $499.7 million worth of stock at the end of September. It was followed by Alkeon Capital Management with a $333.8 million position. Other investors bullish on the company included Citadel Investment Group, Glenview Capital, and Steadfast Capital Management. In terms of the portfolio weights assigned to each position Joho Capital allocated the biggest weight to Global Payments Inc (NYSE:GPN), around 16.67% of its 13F portfolio. Hunt Lane Capital is also relatively very bullish on the stock, designating 7.85 percent of its 13F equity portfolio to GPN.
As one would reasonably expect, some big names were leading the bulls’ herd. Samlyn Capital, managed by Robert Pohly, initiated the largest call position in Global Payments Inc (NYSE:GPN). Samlyn Capital had $40.2 million invested in the company at the end of the quarter. Joe Milano’s Greenhouse Funds also initiated a $23.6 million position during the quarter. The following funds were also among the new GPN investors: Mikal Patel’s Oribel Capital Management, Leon Shaulov’s Maplelane Capital, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s check out hedge fund activity in other stocks similar to Global Payments Inc (NYSE:GPN). These stocks are IQVIA Holdings, Inc. (NYSE:IQV), Synopsys, Inc. (NASDAQ:SNPS), BCE Inc. (NYSE:BCE), eBay Inc (NASDAQ:EBAY), Palantir Technologies Inc. (NYSE:PLTR), The Kraft Heinz Company (NASDAQ:KHC), and TE Connectivity Ltd. (NYSE:TEL). This group of stocks’ market caps are closest to GPN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IQV | 66 | 3756655 | -3 |
| SNPS | 43 | 2343901 | 2 |
| BCE | 15 | 129110 | 1 |
| EBAY | 49 | 2097933 | 10 |
| PLTR | 35 | 1634776 | 9 |
| KHC | 33 | 12321504 | 0 |
| TEL | 41 | 2188058 | 2 |
| Average | 40.3 | 3495991 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 40.3 hedge funds with bullish positions and the average amount invested in these stocks was $3496 million. That figure was $3463 million in GPN’s case. IQVIA Holdings, Inc. (NYSE:IQV) is the most popular stock in this table. On the other hand BCE Inc. (NYSE:BCE) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Global Payments Inc (NYSE:GPN) is more popular among hedge funds. Our overall hedge fund sentiment score for GPN is 87. 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, GPN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GPN were disappointed as the stock returned -4.7% 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 Global Payments Inc (NYSE:GPN)
Follow Global Payments Inc (NYSE:GPN)
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Disclosure: None. This article was originally published at Insider Monkey.
