The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 30th. 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 Ferrari N.V. (NYSE:RACE).
Is Ferrari N.V. (NYSE:RACE) a bargain? Investors who are in the know were in a bullish mood. The number of long hedge fund bets moved up by 1 recently. Ferrari N.V. (NYSE:RACE) was in 27 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 36. Our calculations also showed that RACE isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 26 hedge funds in our database with RACE positions at the end of the first quarter.
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Do Hedge Funds Think RACE Is A Good Stock To Buy Now?
At the end of June, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from one quarter earlier. On the other hand, there were a total of 25 hedge funds with a bullish position in RACE a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Darsana Capital Partners was the largest shareholder of Ferrari N.V. (NYSE:RACE), with a stake worth $257.6 million reported as of the end of June. Trailing Darsana Capital Partners was Melvin Capital Management, which amassed a stake valued at $237 million. Ako Capital, Scopus Asset Management, and Citadel Investment Group 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 Lansing Management allocated the biggest weight to Ferrari N.V. (NYSE:RACE), around 14.45% of its 13F portfolio. Aquamarine Capital Management is also relatively very bullish on the stock, earmarking 7.74 percent of its 13F equity portfolio to RACE.
Now, specific money managers have jumped into Ferrari N.V. (NYSE:RACE) headfirst. Scopus Asset Management, managed by Alexander Mitchell, initiated the most outsized position in Ferrari N.V. (NYSE:RACE). Scopus Asset Management had $115.9 million invested in the company at the end of the quarter. Alexander Mitchell’s Scopus Asset Management also made a $10.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Graham F. Smith’s Franklin Street Capital, Mark Coe’s Intrinsic Edge Capital, and Clayton Gardner and Joe Percoco’s Titan Global Capital.
Let’s go over hedge fund activity in other stocks similar to Ferrari N.V. (NYSE:RACE). These stocks are Newmont Corporation (NYSE:NEM), Pinterest, Inc. (NYSE:PINS), Keurig Dr Pepper Inc. (NASDAQ:KDP), The Kraft Heinz Company (NASDAQ:KHC), Prudential Public Limited Company (NYSE:PUK), Southern Copper Corporation (NYSE:SCCO), and KLA Corporation (NASDAQ:KLAC). This group of stocks’ market caps resemble RACE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NEM | 55 | 1255898 | 12 |
| PINS | 63 | 2915471 | -20 |
| KDP | 28 | 1197414 | -2 |
| KHC | 33 | 13577456 | 0 |
| PUK | 4 | 9037 | 2 |
| SCCO | 23 | 552258 | -4 |
| KLAC | 45 | 1374639 | 5 |
| Average | 35.9 | 2983168 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 35.9 hedge funds with bullish positions and the average amount invested in these stocks was $2983 million. That figure was $993 million in RACE’s case. Pinterest, Inc. (NYSE:PINS) is the most popular stock in this table. On the other hand Prudential Public Limited Company (NYSE:PUK) is the least popular one with only 4 bullish hedge fund positions. Ferrari N.V. (NYSE:RACE) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for RACE is 48. 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. A small number of hedge funds were also right about betting on RACE as the stock returned 8.9% since the end of the second quarter (through 10/15) and outperformed the market by an even larger margin.
Follow Ferrari N.v. (NYSE:RACE)
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Disclosure: None. This article was originally published at Insider Monkey.
