The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Eventbrite, Inc. (NYSE:EB).
Eventbrite, Inc. (NYSE:EB) investors should pay attention to a decrease in hedge fund sentiment lately. Eventbrite, Inc. (NYSE:EB) was in 24 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 26. There were 26 hedge funds in our database with EB holdings at the end of December. Our calculations also showed that EB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most traders, hedge funds are perceived as worthless, outdated investment tools of years past. While there are over 8000 funds in operation at the moment, We choose to focus on the moguls of this group, approximately 850 funds. Most estimates calculate that this group of people shepherd bulk of the smart money’s total asset base, and by observing their unrivaled investments, Insider Monkey has unsheathed a number of investment strategies that have historically outstripped the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Richard Driehaus of Driehaus Capital
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Do Hedge Funds Think EB Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards EB over the last 23 quarters. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
Among these funds, Cadian Capital held the most valuable stake in Eventbrite, Inc. (NYSE:EB), which was worth $50.4 million at the end of the fourth quarter. On the second spot was Atalan Capital which amassed $43.9 million worth of shares. Portsea Asset Management, Millennium Management, and Engle Capital 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 Portsea Asset Management allocated the biggest weight to Eventbrite, Inc. (NYSE:EB), around 19.29% of its 13F portfolio. Banbury Partners is also relatively very bullish on the stock, dishing out 9.44 percent of its 13F equity portfolio to EB.
Due to the fact that Eventbrite, Inc. (NYSE:EB) has faced falling interest from hedge fund managers, it’s easy to see that there is a sect of fund managers that decided to sell off their positions entirely by the end of the first quarter. At the top of the heap, Michael Sidhom’s Immersion Capital cut the biggest stake of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $71.6 million in stock, and John Hurley’s Cavalry Asset Management was right behind this move, as the fund dropped about $6.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds by the end of the first quarter.
Let’s go over hedge fund activity in other stocks similar to Eventbrite, Inc. (NYSE:EB). These stocks are Health Catalyst, Inc (NASDAQ:HCAT), Constellium SE (NYSE:CSTM), Bottomline Technologies (de), Inc. (NASDAQ:EPAY), USANA Health Sciences, Inc. (NYSE:USNA), Century Communities, Inc (NYSE:CCS), The RealReal, Inc. (NASDAQ:REAL), and Chesapeake Utilities Corporation (NYSE:CPK). This group of stocks’ market caps resemble EB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HCAT | 20 | 134687 | -1 |
| CSTM | 36 | 377226 | 1 |
| EPAY | 19 | 98039 | 1 |
| USNA | 19 | 250382 | -3 |
| CCS | 24 | 123486 | 6 |
| REAL | 24 | 399233 | -8 |
| CPK | 6 | 6692 | 2 |
| Average | 21.1 | 198535 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.1 hedge funds with bullish positions and the average amount invested in these stocks was $199 million. That figure was $352 million in EB’s case. Constellium SE (NYSE:CSTM) is the most popular stock in this table. On the other hand Chesapeake Utilities Corporation (NYSE:CPK) is the least popular one with only 6 bullish hedge fund positions. Eventbrite, Inc. (NYSE:EB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EB is 60.7. 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. 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 23.8% in 2021 through July 16th and beat the market again by 7.7 percentage points. Unfortunately EB wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EB were disappointed as the stock returned -26.6% since the end of March (through 7/16) 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 Eventbrite Inc. (NYSE:EB)
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Disclosure: None. This article was originally published at Insider Monkey.
