Hedge Funds Are Buying Live Nation Entertainment, Inc. (LYV)

In this article you are going to find out whether hedge funds think Live Nation Entertainment, Inc. (NYSE:LYV) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Is Live Nation Entertainment, Inc. (NYSE:LYV) the right investment to pursue these days? The best stock pickers were taking a bullish view. The number of long hedge fund positions increased by 7 lately. Live Nation Entertainment, Inc. (NYSE:LYV) was in 47 hedge funds’ portfolios at the end of September. The all time high for this statistic is 50. Our calculations also showed that LYV isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

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. With all of this in mind let’s review the fresh hedge fund action surrounding Live Nation Entertainment, Inc. (NYSE:LYV).

Stanley Druckenmiller of Duquesne Capital

Do Hedge Funds Think LYV Is A Good Stock To Buy Now?

At third quarter’s end, a total of 47 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 18% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards LYV 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.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Gabriel Plotkin’s Melvin Capital Management has the biggest position in Live Nation Entertainment, Inc. (NYSE:LYV), worth close to $544.5 million, accounting for 2.8% of its total 13F portfolio. The second largest stake is held by Gabriel Plotkin of Melvin Capital Management, with a $510.3 million call position; 2.6% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism encompass Robert Joseph Caruso’s Select Equity Group, and Murray Stahl’s Horizon Asset Management. In terms of the portfolio weights assigned to each position Emerson Point Capital allocated the biggest weight to Live Nation Entertainment, Inc. (NYSE:LYV), around 7.57% of its 13F portfolio. Sabrepoint Capital is also relatively very bullish on the stock, setting aside 3.93 percent of its 13F equity portfolio to LYV.

Consequently, key hedge funds have been driving this bullishness. Duquesne Capital, managed by Stanley Druckenmiller, assembled the largest position in Live Nation Entertainment, Inc. (NYSE:LYV). Duquesne Capital had $39 million invested in the company at the end of the quarter. Leon Shaulov’s Maplelane Capital also initiated a $30.1 million position during the quarter. The other funds with new positions in the stock are Jonathan Soros’s JS Capital, Leon Shaulov’s Maplelane Capital, and Joseph Samuels’s Islet Management.

Let’s now take a look at hedge fund activity in other stocks similar to Live Nation Entertainment, Inc. (NYSE:LYV). These stocks are Ingersoll Rand Inc. (NYSE:IR), Steris Plc (NYSE:STE), The Cooper Companies, Inc. (NYSE:COO), Regions Financial Corporation (NYSE:RF), The Clorox Company (NYSE:CLX), Cenovus Energy Inc (NYSE:CVE), and Church & Dwight Co., Inc. (NYSE:CHD). This group of stocks’ market values are closest to LYV’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 30.9 hedge funds with bullish positions and the average amount invested in these stocks was $1018 million. That figure was $1308 million in LYV’s case. The Cooper Companies, Inc. (NYSE:COO) is the most popular stock in this table. On the other hand Church & Dwight Co., Inc. (NYSE:CHD) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Live Nation Entertainment, Inc. (NYSE:LYV) is more popular among hedge funds. Our overall hedge fund sentiment score for LYV is 88.2. 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 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on LYV as the stock returned 17% since the end of September (through 11/30) 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.