The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Invitation Homes Inc. (NYSE:INVH).
Invitation Homes Inc. (NYSE:INVH) was in 28 hedge funds’ portfolios at the end of March. The all time high for this statistic is 33. INVH shareholders have witnessed an increase in hedge fund sentiment of late. There were 27 hedge funds in our database with INVH positions at the end of the fourth quarter. Our calculations also showed that INVH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Ken Heebner of Capital Growth Management
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Do Hedge Funds Think INVH Is A Good Stock To Buy Now?
At Q1’s end, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards INVH over the last 23 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
Among these funds, Zimmer Partners held the most valuable stake in Invitation Homes Inc. (NYSE:INVH), which was worth $271.9 million at the end of the fourth quarter. On the second spot was Echo Street Capital Management which amassed $167.2 million worth of shares. Citadel Investment Group, Long Pond Capital, and Millennium 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 Long Pond Capital allocated the biggest weight to Invitation Homes Inc. (NYSE:INVH), around 4.66% of its 13F portfolio. Woodson Capital Management is also relatively very bullish on the stock, setting aside 4.19 percent of its 13F equity portfolio to INVH.
As aggregate interest increased, key money managers were breaking ground themselves. Long Pond Capital, managed by John Khoury, initiated the most valuable position in Invitation Homes Inc. (NYSE:INVH). Long Pond Capital had $136.6 million invested in the company at the end of the quarter. Charles Fitzgerald’s V3 Capital also initiated a $19.4 million position during the quarter. The following funds were also among the new INVH investors: Louis Bacon’s Moore Global Investments, Andrew Weiss’s Weiss Asset Management, and Steve Cohen’s Point72 Asset Management.
Let’s also examine hedge fund activity in other stocks similar to Invitation Homes Inc. (NYSE:INVH). We will take a look at SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), Catalent Inc (NYSE:CTLT), The AES Corporation (NYSE:AES), Incyte Corporation (NASDAQ:INCY), Cardinal Health, Inc. (NYSE:CAH), Huazhu Group Limited (NASDAQ:HTHT), and J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). This group of stocks’ market valuations are closest to INVH’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SSNC | 54 | 2671021 | 5 |
| CTLT | 29 | 1016499 | -6 |
| AES | 51 | 1541608 | 13 |
| INCY | 32 | 3851519 | -5 |
| CAH | 39 | 967855 | -10 |
| HTHT | 27 | 687842 | 4 |
| JBHT | 22 | 339245 | -4 |
| Average | 36.3 | 1582227 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 36.3 hedge funds with bullish positions and the average amount invested in these stocks was $1582 million. That figure was $1174 million in INVH’s case. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is the most popular stock in this table. On the other hand J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is the least popular one with only 22 bullish hedge fund positions. Invitation Homes Inc. (NYSE:INVH) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for INVH is 40.8. 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 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. A small number of hedge funds were also right about betting on INVH as the stock returned 25.3% since the end of the first quarter (through 7/9) and outperformed the market by an even larger margin.
Follow Invitation Homes Inc. (NYSE:INVH)
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Disclosure: None. This article was originally published at Insider Monkey.
