In this article we will analyze whether Bloomin’ Brands Inc (NASDAQ:BLMN) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is Bloomin’ Brands Inc (NASDAQ:BLMN) a good investment right now? The best stock pickers were taking a bullish view. The number of bullish hedge fund bets moved up by 1 recently. Bloomin’ Brands Inc (NASDAQ:BLMN) was in 37 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 36. This means the bullish number of hedge fund positions in this stock currently sits at its new all time high. Our calculations also showed that BLMN 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. Keeping this in mind let’s check out the latest hedge fund action regarding Bloomin’ Brands Inc (NASDAQ:BLMN).
Peter Rathjens of Arrowstreet Capital
Do Hedge Funds Think BLMN Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from the second quarter of 2021. By comparison, 30 hedge funds held shares or bullish call options in BLMN a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Tremblant Capital was the largest shareholder of Bloomin’ Brands Inc (NASDAQ:BLMN), with a stake worth $72.9 million reported as of the end of September. Trailing Tremblant Capital was Millennium Management, which amassed a stake valued at $62.3 million. Scopus Asset Management, Arrowstreet Capital, and Citadel Investment Group 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 Isomer Partners allocated the biggest weight to Bloomin’ Brands Inc (NASDAQ:BLMN), around 5.77% of its 13F portfolio. DG Capital Management is also relatively very bullish on the stock, earmarking 4.18 percent of its 13F equity portfolio to BLMN.
Consequently, key hedge funds were breaking ground themselves. Kettle Hill Capital Management, managed by Andrew Kurita, initiated the largest position in Bloomin’ Brands Inc (NASDAQ:BLMN). Kettle Hill Capital Management had $14.5 million invested in the company at the end of the quarter. Simon Sadler’s Segantii Capital also initiated a $14 million position during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Elise Di Vincenzo Crumbine’s Stormborn Capital Management, and Robert Pohly’s Samlyn Capital.
Let’s also examine hedge fund activity in other stocks similar to Bloomin’ Brands Inc (NASDAQ:BLMN). These stocks are WesBanco, Inc. (NASDAQ:WSBC), Abercrombie & Fitch Co. (NYSE:ANF), Patria Investments Limited (NASDAQ:PAX), TreeHouse Foods Inc. (NYSE:THS), N-able Inc. (NYSE:NABL), Pactiv Evergreen Inc. (NASDAQ:PTVE), and American Well Corporation (NYSE:AMWL). This group of stocks’ market caps match BLMN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WSBC | 13 | 27002 | 1 |
| ANF | 31 | 415643 | -1 |
| PAX | 15 | 162601 | 0 |
| THS | 20 | 274337 | -2 |
| NABL | 11 | 829545 | 11 |
| PTVE | 6 | 95418 | 0 |
| AMWL | 24 | 79099 | 4 |
| Average | 17.1 | 269092 | 1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17.1 hedge funds with bullish positions and the average amount invested in these stocks was $269 million. That figure was $624 million in BLMN’s case. Abercrombie & Fitch Co. (NYSE:ANF) is the most popular stock in this table. On the other hand Pactiv Evergreen Inc. (NASDAQ:PTVE) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Bloomin’ Brands Inc (NASDAQ:BLMN) is more popular among hedge funds. Our overall hedge fund sentiment score for BLMN is 86. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately BLMN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BLMN were disappointed as the stock returned -29.3% since the end of the third quarter (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
Follow Bloomin' Brands Inc. (NASDAQ:BLMN)
Follow Bloomin' Brands Inc. (NASDAQ:BLMN)
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Disclosure: None. This article was originally published at Insider Monkey.
