A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Cushman & Wakefield plc (NYSE:CWK).
Is Cushman & Wakefield plc (NYSE:CWK) a buy here? The best stock pickers were getting more optimistic. The number of long hedge fund bets inched up by 1 lately. Cushman & Wakefield plc (NYSE:CWK) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 26. Our calculations also showed that CWK isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 23 hedge funds in our database with CWK holdings at the end of June.
Roger Ibbotson of Zebra Capital Management
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. Now we’re going to take a look at the fresh hedge fund action encompassing Cushman & Wakefield plc (NYSE:CWK).
Do Hedge Funds Think CWK Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the previous quarter. By comparison, 12 hedge funds held shares or bullish call options in CWK 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.
When looking at the institutional investors followed by Insider Monkey, Lakewood Capital Management, managed by Anthony Bozza, holds the most valuable position in Cushman & Wakefield plc (NYSE:CWK). Lakewood Capital Management has a $68 million position in the stock, comprising 3% of its 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $31.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions comprise Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Stuart J. Zimmer’s Zimmer Partners and Dmitry Balyasny’s Balyasny Asset Management. In terms of the portfolio weights assigned to each position Lakewood Capital Management allocated the biggest weight to Cushman & Wakefield plc (NYSE:CWK), around 2.99% of its 13F portfolio. Zebra Capital Management is also relatively very bullish on the stock, dishing out 2.01 percent of its 13F equity portfolio to CWK.
Consequently, key hedge funds have been driving this bullishness. Hill Winds Capital, managed by Matthew Crandall Gilman, created the most outsized position in Cushman & Wakefield plc (NYSE:CWK). Hill Winds Capital had $3.1 million invested in the company at the end of the quarter. Roger Ibbotson’s Zebra Capital Management also made a $1.7 million investment in the stock during the quarter. The other funds with brand new CWK positions are John Overdeck and David Siegel’s Two Sigma Advisors, Karim Abbadi and Edward McBride’s Centiva Capital, and Peter Algert’s Algert Global.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Cushman & Wakefield plc (NYSE:CWK) but similarly valued. We will take a look at Qurate Retail, Inc. (NASDAQ:QRTEA), The Hain Celestial Group, Inc. (NASDAQ:HAIN), The Ensign Group, Inc. (NASDAQ:ENSG), Lemonade, Inc. (NYSE:LMND), Warby Parker Inc. (NYSE:WRBY), ExlService Holdings, Inc. (NASDAQ:EXLS), and Magnolia Oil & Gas Corporation (NASDAQ:MGY). This group of stocks’ market caps are similar to CWK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| QRTEA | 34 | 676717 | -5 |
| HAIN | 24 | 982409 | -2 |
| ENSG | 18 | 70587 | 1 |
| LMND | 16 | 117695 | 1 |
| WRBY | 12 | 1411133 | 12 |
| EXLS | 20 | 82507 | 5 |
| MGY | 28 | 143826 | 9 |
| Average | 21.7 | 497839 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.7 hedge funds with bullish positions and the average amount invested in these stocks was $498 million. That figure was $187 million in CWK’s case. Qurate Retail, Inc. (NASDAQ:QRTEA) is the most popular stock in this table. On the other hand Warby Parker Inc. (NYSE:WRBY) is the least popular one with only 12 bullish hedge fund positions. Cushman & Wakefield plc (NYSE:CWK) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CWK is 61. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on CWK as the stock returned 9.2% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Cushman & Wakefield Plc (NYSE:CWK)
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Disclosure: None. This article was originally published at Insider Monkey.
