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. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. What do these smart investors think about Compass Inc. (NYSE:COMP)?
Compass Inc. (NYSE:COMP) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. COMP shareholders have witnessed an increase in hedge fund sentiment of late. There were 23 hedge funds in our database with COMP positions at the end of the second quarter. Our calculations also showed that COMP 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 go over the recent hedge fund action regarding Compass Inc. (NYSE:COMP).
David Atterbury of Whetstone Capital Advisors
Do Hedge Funds Think COMP Is A Good Stock To Buy Now?
At the end of September, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the second quarter of 2021. On the other hand, there were a total of 0 hedge funds with a bullish position in COMP 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.
Among these funds, Discovery Capital Management held the most valuable stake in Compass Inc. (NYSE:COMP), which was worth $445.6 million at the end of the third quarter. On the second spot was Thrive Capital which amassed $96.7 million worth of shares. Schonfeld Strategic Advisors, Alta Park Capital, and Whetstone Capital Advisors 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 Discovery Capital Management allocated the biggest weight to Compass Inc. (NYSE:COMP), around 33.34% of its 13F portfolio. General Equity Partners is also relatively very bullish on the stock, earmarking 10.93 percent of its 13F equity portfolio to COMP.
Consequently, key money managers were breaking ground themselves. Whetstone Capital Advisors, managed by David Atterbury, established the biggest position in Compass Inc. (NYSE:COMP). Whetstone Capital Advisors had $22.6 million invested in the company at the end of the quarter. Michael Kahan and Jeremy Kahan’s North Peak Capital also initiated a $8.1 million position during the quarter. The following funds were also among the new COMP investors: James Thomas Berylson’s Berylson Capital Partners, Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, and Canhui Ou’s One01 Capital.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Compass Inc. (NYSE:COMP) but similarly valued. We will take a look at South State Corporation (NASDAQ:SSB), IDACORP Inc (NYSE:IDA), National Instruments Corporation (NASDAQ:NATI), Stantec Inc. (NYSE:STN), TIM S.A. (NYSE:TIMB), LegalZoom.com Inc. (NASDAQ:LZ), and Terminix Global Holdings, Inc. (NYSE:TMX). All of these stocks’ market caps are closest to COMP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SSB | 20 | 282835 | 2 |
| IDA | 12 | 81266 | -3 |
| NATI | 24 | 249677 | 3 |
| STN | 9 | 75656 | -1 |
| TIMB | 11 | 75843 | 0 |
| LZ | 16 | 179836 | -17 |
| TMX | 20 | 380522 | -2 |
| Average | 16 | 189376 | -2.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $189 million. That figure was $708 million in COMP’s case. National Instruments Corporation (NASDAQ:NATI) is the most popular stock in this table. On the other hand Stantec Inc. (NYSE:STN) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Compass Inc. (NYSE:COMP) is more popular among hedge funds. Our overall hedge fund sentiment score for COMP is 87. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately COMP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on COMP were disappointed as the stock returned -22% since the end of the third quarter (through 12/9) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
