Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Jabil Inc. (NYSE:JBL) based on that data.
Jabil Inc. (NYSE:JBL) has seen an increase in activity from the world’s largest hedge funds of late. Jabil Inc. (NYSE:JBL) was in 27 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 34. There were 26 hedge funds in our database with JBL positions at the end of the second quarter. Our calculations also showed that JBL 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 review the fresh hedge fund action encompassing Jabil Inc. (NYSE:JBL).
Cliff Asness of AQR Capital Management
Do Hedge Funds Think JBL Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from the second quarter of 2021. By comparison, 31 hedge funds held shares or bullish call options in JBL a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Steve Cohen’s Point72 Asset Management has the number one position in Jabil Inc. (NYSE:JBL), worth close to $200.7 million, corresponding to 0.9% of its total 13F portfolio. On Point72 Asset Management’s heels is Millennium Management, led by Israel Englander, holding a $85.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions contain Phill Gross and Robert Atchinson’s Adage Capital Management, Cliff Asness’s AQR Capital Management and Anand Parekh’s Alyeska Investment Group. In terms of the portfolio weights assigned to each position Force Hill Capital Management allocated the biggest weight to Jabil Inc. (NYSE:JBL), around 3.5% of its 13F portfolio. Point72 Asset Management is also relatively very bullish on the stock, dishing out 0.88 percent of its 13F equity portfolio to JBL.
As one would reasonably expect, key money managers have been driving this bullishness. Alyeska Investment Group, managed by Anand Parekh, initiated the most valuable position in Jabil Inc. (NYSE:JBL). Alyeska Investment Group had $15.9 million invested in the company at the end of the quarter. Mikal Patel’s Oribel Capital Management also initiated a $11.8 million position during the quarter. The other funds with brand new JBL positions are Dmitry Balyasny’s Balyasny Asset Management, Chuck Royce’s Royce & Associates, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Jabil Inc. (NYSE:JBL) but similarly valued. These stocks are Vertiv Holdings Co (NYSE:VRT), Knight-Swift Transportation Holdings Inc. (NYSE:KNX), Hyatt Hotels Corporation (NYSE:H), IPG Photonics Corporation (NASDAQ:IPGP), DXC Technology Company (NYSE:DXC), Bright Horizons Family Solutions Inc (NYSE:BFAM), and Gerdau SA (NYSE:GGB). This group of stocks’ market caps are closest to JBL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VRT | 36 | 811401 | 0 |
| KNX | 21 | 261747 | -5 |
| H | 37 | 1003042 | 14 |
| IPGP | 25 | 435718 | 2 |
| DXC | 33 | 644520 | 3 |
| BFAM | 21 | 96786 | 4 |
| GGB | 13 | 220161 | -4 |
| Average | 26.6 | 496196 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.6 hedge funds with bullish positions and the average amount invested in these stocks was $496 million. That figure was $517 million in JBL’s case. Hyatt Hotels Corporation (NYSE:H) is the most popular stock in this table. On the other hand Gerdau SA (NYSE:GGB) is the least popular one with only 13 bullish hedge fund positions. Jabil Inc. (NYSE:JBL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for JBL is 59. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately JBL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on JBL were disappointed as the stock returned 5.9% since the end of September (through 12/9) 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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
