Is Evercore Inc. (NYSE:EVR) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Evercore Inc. (NYSE:EVR) has seen an increase in enthusiasm from smart money recently. Evercore Inc. (NYSE:EVR) was in 32 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 33. There were 31 hedge funds in our database with EVR positions at the end of the second quarter. Our calculations also showed that EVR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
John Rogers of Ariel Investments
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 take a gander at the recent hedge fund action regarding Evercore Inc. (NYSE:EVR).
Do Hedge Funds Think EVR Is A Good Stock To Buy Now?
At the end of September, a total of 32 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from one quarter earlier. By comparison, 27 hedge funds held shares or bullish call options in EVR a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Evercore Inc. (NYSE:EVR) was held by Millennium Management, which reported holding $96.6 million worth of stock at the end of September. It was followed by Point72 Asset Management with a $54 million position. Other investors bullish on the company included Nitorum Capital, Ariel Investments, and GLG Partners. In terms of the portfolio weights assigned to each position Full18 Capital allocated the biggest weight to Evercore Inc. (NYSE:EVR), around 2.94% of its 13F portfolio. Nitorum Capital is also relatively very bullish on the stock, setting aside 1.91 percent of its 13F equity portfolio to EVR.
Consequently, specific money managers were breaking ground themselves. Point72 Asset Management, managed by Steve Cohen, initiated the biggest position in Evercore Inc. (NYSE:EVR). Point72 Asset Management had $54 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also made a $8.8 million investment in the stock during the quarter. The other funds with brand new EVR positions are Renaissance Technologies, Paul Tudor Jones’s Tudor Investment Corp, and Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Evercore Inc. (NYSE:EVR) but similarly valued. We will take a look at Glacier Bancorp, Inc. (NASDAQ:GBCI), Twist Bioscience Corporation (NASDAQ:TWST), Newegg Commerce Inc. (NASDAQ:NEGG), Iridium Communications Inc. (NASDAQ:IRDM), Redfin Corporation (NASDAQ:RDFN), Alight Inc. (NYSE:ALIT), and Compass Inc. (NYSE:COMP). This group of stocks’ market valuations are similar to EVR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GBCI | 15 | 62962 | 4 |
| TWST | 19 | 780112 | -4 |
| NEGG | 5 | 2118 | 4 |
| IRDM | 24 | 684981 | 6 |
| RDFN | 12 | 551336 | -5 |
| ALIT | 42 | 1278015 | 42 |
| COMP | 25 | 708383 | 2 |
| Average | 20.3 | 581130 | 7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.3 hedge funds with bullish positions and the average amount invested in these stocks was $581 million. That figure was $389 million in EVR’s case. Alight Inc. (NYSE:ALIT) is the most popular stock in this table. On the other hand Newegg Commerce Inc. (NASDAQ:NEGG) is the least popular one with only 5 bullish hedge fund positions. Evercore Inc. (NYSE:EVR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EVR is 71.6. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately EVR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EVR were disappointed as the stock returned 4.2% since the end of September (through 11/30) 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.
