Hedge Funds Are Piling Into Schneider National, Inc. (SNDR)

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Schneider National, Inc. (NYSE:SNDR) in this article.

Schneider National, Inc. (NYSE:SNDR) shareholders have witnessed an increase in hedge fund sentiment recently. Schneider National, Inc. (NYSE:SNDR) was in 22 hedge funds’ portfolios at the end of September. The all time high for this statistic is 22. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 20 hedge funds in our database with SNDR holdings at the end of June. Our calculations also showed that SNDR isn’t among the 30 most popular stocks among hedge funds (click for Q2 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 go over the fresh hedge fund action regarding Schneider National, Inc. (NYSE:SNDR).

Matthew Hulsizer of PEAK6 Capital

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

At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SNDR over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, AQR Capital Management held the most valuable stake in Schneider National, Inc. (NYSE:SNDR), which was worth $55.4 million at the end of the third quarter. On the second spot was Millennium Management which amassed $23.3 million worth of shares. Royce & Associates, Scopus Asset Management, and D E Shaw 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 Invenomic Capital Management allocated the biggest weight to Schneider National, Inc. (NYSE:SNDR), around 0.4% of its 13F portfolio. Scopus Asset Management is also relatively very bullish on the stock, designating 0.22 percent of its 13F equity portfolio to SNDR.

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Scopus Asset Management, managed by Alexander Mitchell, initiated the most valuable position in Schneider National, Inc. (NYSE:SNDR). Scopus Asset Management had $13 million invested in the company at the end of the quarter. Ali Motamed’s Invenomic Capital Management also initiated a $1.2 million position during the quarter. The other funds with brand new SNDR positions are Peter Muller’s PDT Partners, Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Schneider National, Inc. (NYSE:SNDR) but similarly valued. We will take a look at ViaSat, Inc. (NASDAQ:VSAT), UniFirst Corp (NYSE:UNF), Atkore Inc. (NYSE:ATKR), Hudson Pacific Properties Inc (NYSE:HPP), SailPoint Technologies Holdings, Inc. (NYSE:SAIL), Black Hills Corporation (NYSE:BKH), and WNS (Holdings) Limited (NYSE:WNS). This group of stocks’ market caps are similar to SNDR’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 18.6 hedge funds with bullish positions and the average amount invested in these stocks was $426 million. That figure was $143 million in SNDR’s case. Atkore Inc. (NYSE:ATKR) is the most popular stock in this table. On the other hand Hudson Pacific Properties Inc (NYSE:HPP) is the least popular one with only 11 bullish hedge fund positions. Schneider National, Inc. (NYSE:SNDR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SNDR is 73.7. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on SNDR as the stock returned 18.7% since the end of Q3 (through 12/31) 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.