With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter of 2021. One of these stocks was GCM Grosvenor Inc. (NASDAQ:GCMG).
Is GCM Grosvenor Inc. (NASDAQ:GCMG) ready to rally soon? Hedge funds were in a bullish mood. The number of long hedge fund bets rose by 1 lately. GCM Grosvenor Inc. (NASDAQ:GCMG) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic is 24. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that GCMG isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 24 hedge funds in our database with GCMG 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. Keeping this in mind let’s take a peek at the latest hedge fund action regarding GCM Grosvenor Inc. (NASDAQ:GCMG).
John Overdeck of Two Sigma Advisors
Do Hedge Funds Think GCMG Is A Good Stock To Buy Now?
At third quarter’s end, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from the second quarter of 2021. On the other hand, there were a total of 0 hedge funds with a bullish position in GCMG a year ago. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
More specifically, Royce & Associates was the largest shareholder of GCM Grosvenor Inc. (NASDAQ:GCMG), with a stake worth $66.3 million reported as of the end of September. Trailing Royce & Associates was Adage Capital Management, which amassed a stake valued at $56.9 million. Schonfeld Strategic Advisors, LMR Partners, and Alyeska Investment Group 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 Becker Drapkin Management allocated the biggest weight to GCM Grosvenor Inc. (NASDAQ:GCMG), around 2.93% of its 13F portfolio. Strycker View Capital is also relatively very bullish on the stock, designating 1.91 percent of its 13F equity portfolio to GCMG.
With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. LMR Partners, managed by Ben Levine, Andrew Manuel and Stefan Renold, initiated the biggest position in GCM Grosvenor Inc. (NASDAQ:GCMG). LMR Partners had $14.6 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $3.7 million position during the quarter. The other funds with new positions in the stock are Usman Waheed’s Strycker View Capital, Noam Gottesman’s GLG Partners, and D. E. Shaw’s D E Shaw.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as GCM Grosvenor Inc. (NASDAQ:GCMG) but similarly valued. We will take a look at SelectQuote, Inc. (NYSE:SLQT), Allegheny Technologies Incorporated (NYSE:ATI), Retail Opportunity Investments Corp (NASDAQ:ROIC), Barnes Group Inc. (NYSE:B), Chesapeake Utilities Corporation (NYSE:CPK), Jack in the Box Inc. (NASDAQ:JACK), and IGM Biosciences, Inc. (NASDAQ:IGMS). This group of stocks’ market values match GCMG’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SLQT | 15 | 151202 | -4 |
| ATI | 26 | 256157 | -2 |
| ROIC | 19 | 121542 | -1 |
| B | 15 | 65552 | 3 |
| CPK | 3 | 5882 | -3 |
| JACK | 26 | 179665 | -3 |
| IGMS | 13 | 573560 | 0 |
| Average | 16.7 | 193366 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.7 hedge funds with bullish positions and the average amount invested in these stocks was $193 million. That figure was $242 million in GCMG’s case. Allegheny Technologies Incorporated (NYSE:ATI) is the most popular stock in this table. On the other hand Chesapeake Utilities Corporation (NYSE:CPK) is the least popular one with only 3 bullish hedge fund positions. GCM Grosvenor Inc. (NASDAQ:GCMG) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GCMG is 83.8. 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. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately GCMG wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GCMG were disappointed as the stock returned -5.9% since the end of September (through 12/9) 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 Gcm Grosvenor Inc.
Follow Gcm Grosvenor Inc.
Suggested Articles:
Disclosure: None. This article was originally published at Insider Monkey.
