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 NVR, Inc. (NYSE:NVR) and determine whether the smart money was really smart about this stock.
NVR, Inc. (NYSE:NVR) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic is 46. NVR investors should be aware of an increase in hedge fund interest of late. There were 28 hedge funds in our database with NVR holdings at the end of June. Our calculations also showed that NVR 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. Now let’s take a gander at the key hedge fund action encompassing NVR, Inc. (NYSE:NVR).
Ken Griffin of Citadel Investment Group
Do Hedge Funds Think NVR Is A Good Stock To Buy Now?
At third quarter’s end, a total of 32 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 14% from the previous quarter. By comparison, 42 hedge funds held shares or bullish call options in NVR a year ago. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
The largest stake in NVR, Inc. (NYSE:NVR) was held by Giverny Capital, which reported holding $73.7 million worth of stock at the end of September. It was followed by AQR Capital Management with a $67.8 million position. Other investors bullish on the company included Impala Asset Management, Markel Gayner Asset Management, and Renaissance Technologies. In terms of the portfolio weights assigned to each position Manor Road Capital Partners allocated the biggest weight to NVR, Inc. (NYSE:NVR), around 8.27% of its 13F portfolio. Guardian Point Capital is also relatively very bullish on the stock, dishing out 5.56 percent of its 13F equity portfolio to NVR.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, assembled the most valuable position in NVR, Inc. (NYSE:NVR). Citadel Investment Group had $23.5 million invested in the company at the end of the quarter. Touk Sinantha’s AltraVue Capital also made a $16.8 million investment in the stock during the quarter. The other funds with brand new NVR positions are Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, Michael Gelband’s ExodusPoint Capital, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s now review hedge fund activity in other stocks similar to NVR, Inc. (NYSE:NVR). These stocks are Bentley Systems, Incorporated (NASDAQ:BSY), Entegris Inc (NASDAQ:ENTG), Akamai Technologies, Inc. (NASDAQ:AKAM), PagSeguro Digital Ltd. (NYSE:PAGS), Continental Resources, Inc. (NYSE:CLR), Wheaton Precious Metals Corp. (NYSE:WPM), and Boston Properties, Inc. (NYSE:BXP). This group of stocks’ market values are closest to NVR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BSY | 18 | 141737 | 1 |
| ENTG | 26 | 1505122 | 1 |
| AKAM | 30 | 327872 | 0 |
| PAGS | 41 | 2446922 | 1 |
| CLR | 24 | 166253 | 1 |
| WPM | 27 | 347520 | 1 |
| BXP | 21 | 1471101 | 2 |
| Average | 26.7 | 915218 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.7 hedge funds with bullish positions and the average amount invested in these stocks was $915 million. That figure was $480 million in NVR’s case. PagSeguro Digital Ltd. (NYSE:PAGS) is the most popular stock in this table. On the other hand Bentley Systems, Incorporated (NASDAQ:BSY) is the least popular one with only 18 bullish hedge fund positions. NVR, Inc. (NYSE:NVR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NVR is 60.3. 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 NVR as the stock returned 11.1% since the end of Q3 (through 1/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
