Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 900 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Acushnet Holdings Corp. (NYSE:GOLF).
Acushnet Holdings Corp. (NYSE:GOLF) shareholders have witnessed an increase in support from the world’s most elite money managers of late. Acushnet Holdings Corp. (NYSE:GOLF) was in 19 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 16. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 13 hedge funds in our database with GOLF positions at the end of the fourth quarter. Our calculations also showed that GOLF isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Crispin Odey of Odey Asset Management Group
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Do Hedge Funds Think GOLF Is A Good Stock To Buy Now?
At the end of March, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 46% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards GOLF over the last 23 quarters. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
Among these funds, Arrowstreet Capital held the most valuable stake in Acushnet Holdings Corp. (NYSE:GOLF), which was worth $8.1 million at the end of the fourth quarter. On the second spot was Renaissance Technologies which amassed $8.1 million worth of shares. Millennium Management, Citadel Investment Group, and AQR Capital Management 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 Zebra Capital Management allocated the biggest weight to Acushnet Holdings Corp. (NYSE:GOLF), around 0.99% of its 13F portfolio. Odey Asset Management Group is also relatively very bullish on the stock, designating 0.52 percent of its 13F equity portfolio to GOLF.
Consequently, key hedge funds have been driving this bullishness. Odey Asset Management Group, managed by Crispin Odey, created the most outsized position in Acushnet Holdings Corp. (NYSE:GOLF). Odey Asset Management Group had $1.9 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also initiated a $1.4 million position during the quarter. The other funds with brand new GOLF positions are Dmitry Balyasny’s Balyasny Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Roger Ibbotson’s Zebra Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Acushnet Holdings Corp. (NYSE:GOLF) but similarly valued. These stocks are Alamos Gold Inc (NYSE:AGI), Cardlytics, Inc. (NASDAQ:CDLX), Corsair Gaming, Inc. (NASDAQ:CRSR), Clover Health Investments, Corp. (NASDAQ:CLOV), Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), Seer, Inc. (NASDAQ:SEER), and Poshmark, Inc. (NASDAQ:POSH). This group of stocks’ market valuations are similar to GOLF’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AGI | 22 | 267948 | 5 |
| CDLX | 38 | 1012610 | 6 |
| CRSR | 9 | 22426 | -3 |
| CLOV | 23 | 822813 | 23 |
| KLIC | 34 | 428667 | -2 |
| SEER | 12 | 342872 | -2 |
| POSH | 14 | 26589 | 14 |
| Average | 21.7 | 417704 | 5.9 |
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 $418 million. That figure was $41 million in GOLF’s case. Cardlytics, Inc. (NASDAQ:CDLX) is the most popular stock in this table. On the other hand Corsair Gaming, Inc. (NASDAQ:CRSR) is the least popular one with only 9 bullish hedge fund positions. Acushnet Holdings Corp. (NYSE:GOLF) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for GOLF is 57.2. 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 23.8% in 2021 through July 16th and beat the market by 7.7 percentage points. A small number of hedge funds were also right about betting on GOLF, though not to the same extent, as the stock returned 17.7% since the end of Q1 (through July 16th) and outperformed the market.
Follow Acushnet Holdings Corp. (NYSE:GOLF)
Follow Acushnet Holdings Corp. (NYSE:GOLF)
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Disclosure: None. This article was originally published at Insider Monkey.
