Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of NeoGames S.A. (NASDAQ:NGMS) based on that data.
NeoGames S.A. (NASDAQ:NGMS) was in 22 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 14. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. NGMS shareholders have witnessed an increase in hedge fund sentiment recently. There were 11 hedge funds in our database with NGMS holdings at the end of June. Our calculations also showed that NGMS isn’t among the 30 most popular stocks among hedge funds (click for Q2 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. Now we’re going to take a look at the recent hedge fund action surrounding NeoGames S.A. (NASDAQ:NGMS).
Richard Driehaus of Driehaus Capital
Do Hedge Funds Think NGMS Is A Good Stock To Buy Now?
At the end of September, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 100% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards NGMS over the last 25 quarters. So, let’s examine 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, Jonathan Auerbach’s Hound Partners has the most valuable position in NeoGames S.A. (NASDAQ:NGMS), worth close to $26.6 million, comprising 1.4% of its total 13F portfolio. The second largest stake is held by Driehaus Capital, led by Richard Driehaus, holding a $19.9 million position; 0.2% of its 13F portfolio is allocated to the company. Some other peers with similar optimism encompass Joseph Cornell’s Bluegrass Capital Partners, Will Cook’s Sunriver Management and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Bluegrass Capital Partners allocated the biggest weight to NeoGames S.A. (NASDAQ:NGMS), around 8.79% of its 13F portfolio. Nishkama Capital is also relatively very bullish on the stock, designating 1.51 percent of its 13F equity portfolio to NGMS.
Consequently, key hedge funds have jumped into NeoGames S.A. (NASDAQ:NGMS) headfirst. Hound Partners, managed by Jonathan Auerbach, created the biggest position in NeoGames S.A. (NASDAQ:NGMS). Hound Partners had $26.6 million invested in the company at the end of the quarter. Will Cook’s Sunriver Management also made a $9.4 million investment in the stock during the quarter. The following funds were also among the new NGMS investors: Israel Englander’s Millennium Management, Joseph Samuels’s Islet Management, and Ravee Mehta’s Nishkama Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as NeoGames S.A. (NASDAQ:NGMS) but similarly valued. These stocks are The Honest Company Inc. (NASDAQ:HNST), HCI Group Inc (NYSE:HCI), The Gorman-Rupp Company (NYSE:GRC), Stoke Therapeutics, Inc. (NASDAQ:STOK), NetSTREIT Corp. (NYSE:NTST), Gracell Biotechnologies Inc. (NASDAQ:GRCL), and Viad Corp (NYSE:VVI). All of these stocks’ market caps are closest to NGMS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HNST | 7 | 32597 | 7 |
| HCI | 21 | 150204 | 0 |
| GRC | 7 | 25616 | -1 |
| STOK | 11 | 113177 | -3 |
| NTST | 12 | 92479 | 2 |
| GRCL | 7 | 154765 | -2 |
| VVI | 12 | 129365 | -2 |
| Average | 11 | 99743 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $120 million in NGMS’s case. HCI Group Inc (NYSE:HCI) is the most popular stock in this table. On the other hand The Honest Company Inc. (NASDAQ:HNST) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks NeoGames S.A. (NASDAQ:NGMS) is more popular among hedge funds. Our overall hedge fund sentiment score for NGMS is 90. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately NGMS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NGMS were disappointed as the stock returned -24.3% since the end of the third quarter (through 12/31) 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.
