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 have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Genworth Financial Inc (NYSE:GNW) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Genworth Financial Inc (NYSE:GNW) investors should be aware of an increase in hedge fund interest recently. Genworth Financial Inc (NYSE:GNW) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 38. There were 20 hedge funds in our database with GNW holdings at the end of June. Our calculations also showed that GNW isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Peter Rathjens of Arrowstreet Capital
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 let’s analyze the fresh hedge fund action regarding Genworth Financial Inc (NYSE:GNW).
Do Hedge Funds Think GNW Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from one quarter earlier. On the other hand, there were a total of 38 hedge funds with a bullish position in GNW a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Shah Capital Management was the largest shareholder of Genworth Financial Inc (NYSE:GNW), with a stake worth $43.5 million reported as of the end of September. Trailing Shah Capital Management was D E Shaw, which amassed a stake valued at $26 million. Millennium Management, Arrowstreet Capital, and Segantii Capital 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 Shah Capital Management allocated the biggest weight to Genworth Financial Inc (NYSE:GNW), around 11.77% of its 13F portfolio. Sonic Capital is also relatively very bullish on the stock, setting aside 3.04 percent of its 13F equity portfolio to GNW.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Interval Partners, managed by Gregg Moskowitz, created the biggest position in Genworth Financial Inc (NYSE:GNW). Interval Partners had $3.4 million invested in the company at the end of the quarter. Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors also initiated a $1.3 million position during the quarter. The other funds with brand new GNW positions are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Peter Algert’s Algert Global, and Michael Gelband’s ExodusPoint Capital.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Genworth Financial Inc (NYSE:GNW) but similarly valued. These stocks are Gogo Inc (NASDAQ:GOGO), Telos Corporation (NASDAQ:TLS), GMS Inc. (NYSE:GMS), Osisko Gold Royalties Ltd (NYSE:OR), Adtalem Global Education Inc. (NYSE:ATGE), WM Technology Inc. (NASDAQ:MAPS), and Centennial Resource Development, Inc. (NASDAQ:CDEV). This group of stocks’ market valuations resemble GNW’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GOGO | 19 | 286171 | -3 |
| TLS | 12 | 182403 | -7 |
| GMS | 20 | 319509 | 1 |
| OR | 19 | 185490 | 0 |
| ATGE | 14 | 276614 | -5 |
| MAPS | 21 | 306912 | -1 |
| CDEV | 19 | 137080 | -3 |
| Average | 17.7 | 242026 | -2.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17.7 hedge funds with bullish positions and the average amount invested in these stocks was $242 million. That figure was $131 million in GNW’s case. WM Technology Inc. (NASDAQ:MAPS) is the most popular stock in this table. On the other hand Telos Corporation (NASDAQ:TLS) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Genworth Financial Inc (NYSE:GNW) is more popular among hedge funds. Our overall hedge fund sentiment score for GNW is 76.2. 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 returned 31.1% in 2021 through December 9th but still managed to beat the market by 5.1 percentage points. Hedge funds were also right about betting on GNW as the stock returned 9.3% since the end of September (through 12/9) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
