In this article we will take a look at whether hedge funds think Raymond James Financial, Inc. (NYSE:RJF) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Raymond James Financial, Inc. (NYSE:RJF) was in 32 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 35. RJF has experienced an increase in hedge fund interest of late. There were 29 hedge funds in our database with RJF positions at the end of the second quarter. Our calculations also showed that RJF isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
David Siegel of Two Sigma Advisors
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 analyze the new hedge fund action encompassing Raymond James Financial, Inc. (NYSE:RJF).
Do Hedge Funds Think RJF Is A Good Stock To Buy Now?
At third quarter’s end, a total of 32 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in RJF over the last 25 quarters. 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, Brave Warrior Capital was the largest shareholder of Raymond James Financial, Inc. (NYSE:RJF), with a stake worth $209.3 million reported as of the end of September. Trailing Brave Warrior Capital was Southpoint Capital Advisors, which amassed a stake valued at $110.7 million. Fisher Asset Management, Citadel Investment Group, and Schonfeld Strategic Advisors 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 Brave Warrior Capital allocated the biggest weight to Raymond James Financial, Inc. (NYSE:RJF), around 7.33% of its 13F portfolio. Southpoint Capital Advisors is also relatively very bullish on the stock, dishing out 2.36 percent of its 13F equity portfolio to RJF.
Now, some big names have jumped into Raymond James Financial, Inc. (NYSE:RJF) headfirst. Renaissance Technologies, initiated the most valuable position in Raymond James Financial, Inc. (NYSE:RJF). Renaissance Technologies had $26.1 million invested in the company at the end of the quarter. Greg Poole’s Echo Street Capital Management also made a $0.8 million investment in the stock during the quarter. The other funds with brand new RJF positions are John Overdeck and David Siegel’s Two Sigma Advisors, Paul Tudor Jones’s Tudor Investment Corp, and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s now review hedge fund activity in other stocks similar to Raymond James Financial, Inc. (NYSE:RJF). These stocks are Burlington Stores Inc (NYSE:BURL), Restaurant Brands International Inc (NYSE:QSR), Avangrid, Inc. (NYSE:AGR), Tradeweb Markets Inc. (NASDAQ:TW), Tyler Technologies, Inc. (NYSE:TYL), Hologic, Inc. (NASDAQ:HOLX), and Ubiquiti Inc. (NYSE:UI). This group of stocks’ market caps are similar to RJF’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BURL | 45 | 1835947 | 2 |
| QSR | 22 | 1873877 | 0 |
| AGR | 9 | 37232 | -3 |
| TW | 22 | 135429 | 7 |
| TYL | 30 | 772769 | -3 |
| HOLX | 39 | 716983 | -2 |
| UI | 20 | 240246 | -3 |
| Average | 26.7 | 801783 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.7 hedge funds with bullish positions and the average amount invested in these stocks was $802 million. That figure was $768 million in RJF’s case. Burlington Stores Inc (NYSE:BURL) is the most popular stock in this table. On the other hand Avangrid, Inc. (NYSE:AGR) is the least popular one with only 9 bullish hedge fund positions. Raymond James Financial, Inc. (NYSE:RJF) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for RJF is 67.4. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on RJF, though not to the same extent, as the stock returned 6.5% since Q3 (through November 30th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
