The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Hilton Grand Vacations Inc. (NYSE:HGV) based on those filings.
Hilton Grand Vacations Inc. (NYSE:HGV) investors should be aware of an increase in hedge fund sentiment in recent months. Hilton Grand Vacations Inc. (NYSE:HGV) was in 34 hedge funds’ portfolios at the end of March. The all time high for this statistic is 46. Our calculations also showed that HGV isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Today there are tons of indicators market participants put to use to appraise stocks. A duo of the less utilized indicators are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the best picks of the elite investment managers can outclass their index-focused peers by a superb margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Chuck Royce of Royce & Associates
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now we’re going to take a look at the key hedge fund action regarding Hilton Grand Vacations Inc. (NYSE:HGV).
Do Hedge Funds Think HGV Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. By comparison, 29 hedge funds held shares or bullish call options in HGV a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
Among these funds, Parsifal Capital Management held the most valuable stake in Hilton Grand Vacations Inc. (NYSE:HGV), which was worth $145.9 million at the end of the fourth quarter. On the second spot was North Peak Capital which amassed $139.4 million worth of shares. Iridian Asset Management, Long Pond Capital, and P2 Capital Partners 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 North Peak Capital allocated the biggest weight to Hilton Grand Vacations Inc. (NYSE:HGV), around 30.84% of its 13F portfolio. Parsifal Capital Management is also relatively very bullish on the stock, setting aside 12.93 percent of its 13F equity portfolio to HGV.
As aggregate interest increased, key hedge funds were leading the bulls’ herd. Iridian Asset Management, managed by David Cohen and Harold Levy, initiated the most outsized position in Hilton Grand Vacations Inc. (NYSE:HGV). Iridian Asset Management had $94.3 million invested in the company at the end of the quarter. Malcolm Levine’s Dendur Capital also initiated a $18.3 million position during the quarter. The following funds were also among the new HGV investors: Chuck Royce’s Royce & Associates, Usman Waheed’s Strycker View Capital, and Jeff Osher’s No Street Capital.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Hilton Grand Vacations Inc. (NYSE:HGV) but similarly valued. These stocks are Old National Bancorp (NYSE:ONB), Root, Inc. (NASDAQ:ROOT), Insperity Inc (NYSE:NSP), Colony Capital Inc (NYSE:CLNY), Pebblebrook Hotel Trust (NYSE:PEB), Option Care Health, Inc. (NASDAQ:OPCH), and Walker & Dunlop Inc. (NYSE:WD). This group of stocks’ market valuations are closest to HGV’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ONB | 17 | 50718 | 6 |
| ROOT | 18 | 346606 | -7 |
| NSP | 20 | 226976 | -5 |
| CLNY | 25 | 592790 | 4 |
| PEB | 10 | 48298 | -6 |
| OPCH | 31 | 373980 | 7 |
| WD | 19 | 110380 | 0 |
| Average | 20 | 249964 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $250 million. That figure was $783 million in HGV’s case. Option Care Health, Inc. (NASDAQ:OPCH) is the most popular stock in this table. On the other hand Pebblebrook Hotel Trust (NYSE:PEB) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Hilton Grand Vacations Inc. (NYSE:HGV) is more popular among hedge funds. Our overall hedge fund sentiment score for HGV is 80.2. 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 gained 19.3% in 2021 through June 25th and still managed to beat the market by 4.8 percentage points. Hedge funds were also right about betting on HGV, though not to the same extent, as the stock returned 12.9% since the end of March (through June 25th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
