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 866 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 March 31st. In this article we look at what those investors think of Shutterstock Inc (NYSE:SSTK).
Is Shutterstock Inc (NYSE:SSTK) a healthy stock for your portfolio? Investors who are in the know were taking a pessimistic view. The number of long hedge fund bets were cut by 5 recently. Shutterstock Inc (NYSE:SSTK) was in 18 hedge funds’ portfolios at the end of March. The all time high for this statistic is 23. Our calculations also showed that SSTK isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
David Harding of Winton Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, pet market is growing at a 7% annual rate and is expected to reach $110 billion in 2021. So, we are checking out the 5 best stocks for animal lovers. We go through lists like the 15 best Jim Cramer stocks to identify the next Tesla that will deliver outsized returns. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a peek at the key hedge fund action regarding Shutterstock Inc (NYSE:SSTK).
Do Hedge Funds Think SSTK Is A Good Stock To Buy Now?
At the end of March, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of -22% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SSTK over the last 23 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies, holds the biggest position in Shutterstock Inc (NYSE:SSTK). Renaissance Technologies has a $109.4 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is D E Shaw, led by D. E. Shaw, holding a $24.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other professional money managers that hold long positions contain Benjamin Natter’s Kent Lake Capital, Jack Ripsteen’s Potrero Capital Research and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Kent Lake Capital allocated the biggest weight to Shutterstock Inc (NYSE:SSTK), around 8.58% of its 13F portfolio. Potrero Capital Research is also relatively very bullish on the stock, setting aside 3.4 percent of its 13F equity portfolio to SSTK.
Since Shutterstock Inc (NYSE:SSTK) has faced declining sentiment from the smart money, it’s easy to see that there exists a select few fund managers who were dropping their full holdings last quarter. Interestingly, David Harding’s Winton Capital Management sold off the largest position of the 750 funds monitored by Insider Monkey, totaling close to $1.6 million in stock, and Michael Gelband’s ExodusPoint Capital was right behind this move, as the fund sold off about $0.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 5 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to Shutterstock Inc (NYSE:SSTK). We will take a look at Revolve Group, Inc. (NYSE:RVLV), Vertex, Inc. (NASDAQ:VERX), Butterfly Network, Inc. (NYSE:BFLY), Summit Materials Inc (NYSE:SUM), Camping World Holdings, Inc. (NYSE:CWH), Onto Innovation Inc. (NYSE:ONTO), and Terex Corporation (NYSE:TEX). All of these stocks’ market caps match SSTK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RVLV | 29 | 256608 | 5 |
| VERX | 11 | 40913 | 0 |
| BFLY | 32 | 299537 | 32 |
| SUM | 32 | 198758 | 1 |
| CWH | 24 | 325789 | -3 |
| ONTO | 18 | 297070 | -1 |
| TEX | 31 | 501779 | 8 |
| Average | 25.3 | 274351 | 6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 25.3 hedge funds with bullish positions and the average amount invested in these stocks was $274 million. That figure was $208 million in SSTK’s case. Butterfly Network, Inc. (NYSE:BFLY) is the most popular stock in this table. On the other hand Vertex, Inc. (NASDAQ:VERX) is the least popular one with only 11 bullish hedge fund positions. Shutterstock Inc (NYSE:SSTK) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SSTK is 40.1. 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 28.5% in 2021 through July 23rd and beat the market by 10.1 percentage points. A small number of hedge funds were also right about betting on SSTK, though not to the same extent, as the stock returned 18.8% since the end of Q1 (through July 23rd) and outperformed the market.
Follow Shutterstock Inc. (NYSE:SSTK)
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Disclosure: None. This article was originally published at Insider Monkey.
