Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of YETI Holdings, Inc. (NYSE:YETI).
YETI Holdings, Inc. (NYSE:YETI) was in 34 hedge funds’ portfolios at the end of June. The all time high for this statistic is 30. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. YETI investors should pay attention to an increase in support from the world’s most elite money managers of late. There were 30 hedge funds in our database with YETI positions at the end of the first quarter. Our calculations also showed that YETI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Matthew Hulsizer of PEAK6 Capital
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Do Hedge Funds Think YETI Is A Good Stock To Buy Now?
At Q2’s end, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in YETI over the last 24 quarters. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
The largest stake in YETI Holdings, Inc. (NYSE:YETI) was held by 0, which reported holding $77 million worth of stock at the end of June. It was followed by Arrowstreet Capital with a $61.4 million position. Other investors bullish on the company included Citadel Investment Group, PEAK6 Capital Management, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Deep Field Asset Management allocated the biggest weight to YETI Holdings, Inc. (NYSE:YETI), around 3.47% of its 13F portfolio. Becker Drapkin Management is also relatively very bullish on the stock, earmarking 0.99 percent of its 13F equity portfolio to YETI.
Consequently, specific money managers were leading the bulls’ herd. LMR Partners, managed by Ben Levine, Andrew Manuel and Stefan Renold, initiated the biggest position in YETI Holdings, Inc. (NYSE:YETI). LMR Partners had $1.5 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also made a $1.5 million investment in the stock during the quarter. The other funds with brand new YETI positions are Greg Poole’s Echo Street Capital Management, Qing Li’s Sciencast Management, and D. E. Shaw’s D E Shaw.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as YETI Holdings, Inc. (NYSE:YETI) but similarly valued. These stocks are Kinross Gold Corporation (NYSE:KGC), Mobile TeleSystems OJSC (NYSE:MBT), Autohome Inc (NYSE:ATHM), Gentex Corporation (NASDAQ:GNTX), Donaldson Company, Inc. (NYSE:DCI), Amedisys Inc (NASDAQ:AMED), and Grupo Televisa SAB (NYSE:TV). All of these stocks’ market caps are similar to YETI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KGC | 28 | 360274 | 1 |
| MBT | 10 | 293155 | -1 |
| ATHM | 16 | 344855 | -2 |
| GNTX | 34 | 440659 | -1 |
| DCI | 21 | 258723 | -7 |
| AMED | 26 | 271283 | 0 |
| TV | 17 | 1116489 | 2 |
| Average | 21.7 | 440777 | -1.1 |
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 $441 million. That figure was $282 million in YETI’s case. Gentex Corporation (NASDAQ:GNTX) is the most popular stock in this table. On the other hand Mobile TeleSystems OJSC (NYSE:MBT) is the least popular one with only 10 bullish hedge fund positions. YETI Holdings, Inc. (NYSE:YETI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for YETI is 89. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 21.8% in 2021 through October 11th and beat the market again by 4.4 percentage points. Unfortunately YETI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on YETI were disappointed as the stock returned -8.8% since the end of June (through 10/11) 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 many of these stocks already outperformed the market since 2019.
Follow Yeti Holdings Inc. (NYSE:YETI)
Follow Yeti Holdings Inc. (NYSE:YETI)
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Disclosure: None. This article was originally published at Insider Monkey.
