Hedge Funds Are Piling Into Apollo Global Management Inc (APO)

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. In this article we are going to take a look at smart money sentiment towards Apollo Global Management Inc (NYSE:APO).

Is Apollo Global Management Inc (NYSE:APO) the right investment to pursue these days? Hedge funds were becoming hopeful. The number of bullish hedge fund bets moved up by 10 recently. Apollo Global Management Inc (NYSE:APO) was in 47 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 44. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that APO 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. Now let’s take a look at the new hedge fund action surrounding Apollo Global Management Inc (NYSE:APO).

Glenn Greenberg of Brave Warrior Capital

Do Hedge Funds Think APO Is A Good Stock To Buy Now?

At third quarter’s end, a total of 47 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 27% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in APO 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.

Among these funds, Tiger Global Management LLC held the most valuable stake in Apollo Global Management Inc (NYSE:APO), which was worth $1377.3 million at the end of the third quarter. On the second spot was Senator Investment Group which amassed $160.1 million worth of shares. Brave Warrior Capital, Hawk Ridge Management, and Newbrook 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 Scoggin allocated the biggest weight to Apollo Global Management Inc (NYSE:APO), around 6.83% of its 13F portfolio. Dendur Capital is also relatively very bullish on the stock, setting aside 6.46 percent of its 13F equity portfolio to APO.

Now, key money managers were breaking ground themselves. Senator Investment Group, managed by Doug Silverman and Alexander Klabin, created the largest position in Apollo Global Management Inc (NYSE:APO). Senator Investment Group had $160.1 million invested in the company at the end of the quarter. Glenn Greenberg’s Brave Warrior Capital also made a $154.4 million investment in the stock during the quarter. The following funds were also among the new APO investors: Robert Boucai’s Newbrook Capital Advisors, Tom Gayner’s Markel Gayner Asset Management, and Malcolm Levine’s Dendur Capital.

Let’s check out hedge fund activity in other stocks similar to Apollo Global Management Inc (NYSE:APO). We will take a look at Shaw Communications Inc (NYSE:SJR), The Interpublic Group of Companies Inc (NYSE:IPG), monday.com Ltd. (NASDAQ:MNDY), Equity Lifestyle Properties, Inc. (NYSE:ELS), RH (NYSE:RH), Evergy, Inc. (NYSE:EVRG), and Vedanta Ltd (NYSE:VEDL). This group of stocks’ market values are similar to APO’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 26.3 hedge funds with bullish positions and the average amount invested in these stocks was $1202 million. That figure was $2594 million in APO’s case. RH (NYSE:RH) is the most popular stock in this table. On the other hand Vedanta Ltd (NYSE:VEDL) is the least popular one with only 8 bullish hedge fund positions. Apollo Global Management Inc (NYSE:APO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for APO is 79.8. 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. Hedge funds were also right about betting on APO as the stock returned 15.7% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.