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. We have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Valvoline Inc. (NYSE:VVV) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is Valvoline Inc. (NYSE:VVV) an outstanding investment right now? Prominent investors were turning less bullish. The number of long hedge fund positions retreated by 3 lately. Valvoline Inc. (NYSE:VVV) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 40. Our calculations also showed that VVV isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 26 hedge funds in our database with VVV holdings at the end of June.
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. With all of this in mind let’s go over the latest hedge fund action surrounding Valvoline Inc. (NYSE:VVV).
Do Hedge Funds Think VVV Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -12% from one quarter earlier. On the other hand, there were a total of 35 hedge funds with a bullish position in VVV a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions).
The largest stake in Valvoline Inc. (NYSE:VVV) was held by Brave Warrior Capital, which reported holding $237.5 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $88.1 million position. Other investors bullish on the company included Tensile Capital, Hawk Ridge Management, and JANA Partners. In terms of the portfolio weights assigned to each position Tensile Capital allocated the biggest weight to Valvoline Inc. (NYSE:VVV), around 9.24% of its 13F portfolio. Brave Warrior Capital is also relatively very bullish on the stock, dishing out 8.32 percent of its 13F equity portfolio to VVV.
Judging by the fact that Valvoline Inc. (NYSE:VVV) has faced declining sentiment from the smart money, it’s easy to see that there was a specific group of hedgies who sold off their positions entirely last quarter. Intriguingly, Simon Sadler’s Segantii Capital dumped the largest stake of the “upper crust” of funds watched by Insider Monkey, totaling close to $13 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also said goodbye to its stock, about $2.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Valvoline Inc. (NYSE:VVV) but similarly valued. These stocks are Harley-Davidson, Inc. (NYSE:HOG), Southwestern Energy Company (NYSE:SWN), Colliers International Group Inc (NASDAQ:CIGI), Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), Grupo Aeroportuario del Sureste (NYSE:ASR), Paysafe Limited (NYSE:PSFE), and Luminar Technologies, Inc. (NASDAQ:LAZR). All of these stocks’ market caps are closest to VVV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HOG | 33 | 956467 | -4 |
| SWN | 22 | 263603 | -5 |
| CIGI | 16 | 726941 | -1 |
| MRVI | 34 | 1068071 | 14 |
| ASR | 2 | 23593 | -3 |
| PSFE | 42 | 597243 | -8 |
| LAZR | 12 | 111108 | -9 |
| Average | 23 | 535289 | -2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $535 million. That figure was $642 million in VVV’s case. Paysafe Limited (NYSE:PSFE) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste (NYSE:ASR) is the least popular one with only 2 bullish hedge fund positions. Valvoline Inc. (NYSE:VVV) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for VVV is 45.5. 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. A small number of hedge funds were also right about betting on VVV as the stock returned 12.9% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
