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. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards Nerdy Inc. (NYSE:NRDY).
Is Nerdy Inc. (NYSE:NRDY) ready to rally soon? Money managers were betting on the stock. The number of bullish hedge fund positions improved by 22 in recent months. Nerdy Inc. (NYSE:NRDY) was in 22 hedge funds’ portfolios at the end of September. Our calculations also showed that NRDY isn’t among the 30 most popular stocks among hedge funds (click for Q2 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. Keeping this in mind we’re going to review the recent hedge fund action surrounding Nerdy Inc. (NYSE:NRDY).
Glen Kacher of Light Street Capital
Do Hedge Funds Think NRDY Is A Good Stock To Buy Now?
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22 from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in NRDY a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Nerdy Inc. (NYSE:NRDY) was held by Light Street Capital, which reported holding $93.8 million worth of stock at the end of September. It was followed by Greenvale Capital with a $69.7 million position. Other investors bullish on the company included Falcon Edge Capital, Woodline Partners, and Archon Capital Management. In terms of the portfolio weights assigned to each position Greenvale Capital allocated the biggest weight to Nerdy Inc. (NYSE:NRDY) , around 8.4% of its 13F portfolio. Element Capital Management is also relatively very bullish on the stock, dishing out 4.85 percent of its 13F equity portfolio to NRDY.
As industrywide interest jumped, specific money managers have been driving this bullishness. Light Street Capital, managed by Glen Kacher, assembled the most outsized position in Nerdy Inc. (NYSE:NRDY) . Light Street Capital had $93.8 million invested in the company at the end of the quarter. Bruce Emery’s Greenvale Capital also initiated a $69.7 million position during the quarter. The other funds with new positions in the stock are Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital, Michael Rockefeller and KarláKroeker’s Woodline Partners, and Constantinos J. Christofilis’s Archon Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Nerdy Inc. (NYSE:NRDY) but similarly valued. These stocks are Rani Therapeutics Holdings Inc. (NASDAQ:RANI), Omega Therapeutics Inc. (NASDAQ:OMGA), Janux Therapeutics Inc. (NASDAQ:JANX), The Aaron’s Company, Inc. (NYSE:AAN), Bristow Group, Inc. (NYSE:VTOL), 908 Devices Inc. (NASDAQ:MASS), and InnovAge Holding Corp. (NASDAQ:INNV). This group of stocks’ market caps match NRDY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RANI | 2 | 1854 | 2 |
| OMGA | 10 | 44214 | 10 |
| JANX | 10 | 384572 | 10 |
| AAN | 17 | 67833 | 2 |
| VTOL | 12 | 307758 | -2 |
| MASS | 8 | 152902 | -5 |
| INNV | 16 | 28963 | -2 |
| Average | 10.7 | 141157 | 2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.7 hedge funds with bullish positions and the average amount invested in these stocks was $141 million. That figure was $299 million in NRDY’s case. The Aaron’s Company, Inc. (NYSE:AAN) is the most popular stock in this table. On the other hand Rani Therapeutics Holdings Inc. (NASDAQ:RANI) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Nerdy Inc. (NYSE:NRDY) is more popular among hedge funds. Our overall hedge fund sentiment score for NRDY is 90. 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 NRDY wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NRDY were disappointed as the stock returned -55% since the end of the third quarter (through 12/31) 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 most of these stocks already outperformed the market since 2019.
Follow Nerdy Inc.
Follow Nerdy Inc.
Suggested Articles:
- Top 20 Gold Mining Companies In The World
- 10 Best Uranium Stocks to Buy Now
- 15 Largest Gambling Companies In The World
Disclosure: None. This article was originally published at Insider Monkey.
