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 Bumble Inc. (NASDAQ:BMBL) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Bumble Inc. (NASDAQ:BMBL) shareholders have witnessed an increase in hedge fund sentiment recently. Bumble Inc. (NASDAQ:BMBL) was in 35 hedge funds’ portfolios at the end of September. The all time high for this statistic is 29. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 23 hedge funds in our database with BMBL holdings at the end of June. Our calculations also showed that BMBL isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Brad Gerstner of Altimeter Capital
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 we’re going to take a look at the key hedge fund action encompassing Bumble Inc. (NASDAQ:BMBL).
Do Hedge Funds Think BMBL Is A Good Stock To Buy Now?
At third quarter’s end, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 52% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in BMBL a year ago. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
Among these funds, Citadel Investment Group held the most valuable stake in Bumble Inc. (NASDAQ:BMBL), which was worth $163.8 million at the end of the third quarter. On the second spot was Anomaly Capital Management which amassed $61.9 million worth of shares. Altimeter Capital Management, Tiger Global Management LLC, and Balyasny Asset Management 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 Anomaly Capital Management allocated the biggest weight to Bumble Inc. (NASDAQ:BMBL), around 3.97% of its 13F portfolio. Mondrian Capital is also relatively very bullish on the stock, designating 1.71 percent of its 13F equity portfolio to BMBL.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Anomaly Capital Management, managed by Ben Jacobs, created the most outsized position in Bumble Inc. (NASDAQ:BMBL). Anomaly Capital Management had $61.9 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $44.7 million position during the quarter. The following funds were also among the new BMBL investors: James Parsons’s Junto Capital Management, Joseph Samuels’s Islet Management, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Bumble Inc. (NASDAQ:BMBL) but similarly valued. These stocks are Core & Main Inc. (NYSE:CNM), Grupo Aval Acciones y Valores S.A. (NYSE:AVAL), Synovus Financial Corp. (NYSE:SNV), Shift4 Payments, Inc. (NYSE:FOUR), Coty Inc (NYSE:COTY), MasTec, Inc. (NYSE:MTZ), and Elbit Systems Ltd. (NASDAQ:ESLT). This group of stocks’ market caps are similar to BMBL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CNM | 12 | 276636 | 12 |
| AVAL | 8 | 12870 | 4 |
| SNV | 29 | 235408 | -1 |
| FOUR | 32 | 628319 | 1 |
| COTY | 40 | 519189 | 10 |
| MTZ | 24 | 439777 | -15 |
| ESLT | 4 | 56484 | 0 |
| Average | 21.3 | 309812 | 1.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.3 hedge funds with bullish positions and the average amount invested in these stocks was $310 million. That figure was $609 million in BMBL’s case. Coty Inc (NYSE:COTY) is the most popular stock in this table. On the other hand Elbit Systems Ltd. (NASDAQ:ESLT) is the least popular one with only 4 bullish hedge fund positions. Bumble Inc. (NASDAQ:BMBL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BMBL is 83.1. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately BMBL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BMBL were disappointed as the stock returned -31.5% since the end of September (through 11/30) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
