Hedge Funds Are Warming Up To Cable One Inc (CABO)

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 at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Cable One Inc (NYSE:CABO).

Is Cable One Inc (NYSE:CABO) the right investment to pursue these days? Money managers were taking a bullish view. The number of long hedge fund positions advanced by 6 lately. Cable One Inc (NYSE:CABO) was in 26 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 27. Our calculations also showed that CABO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 20 hedge funds in our database with CABO 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 we’re going to view the fresh hedge fund action regarding Cable One Inc (NYSE:CABO).

Dmitry Balyasny of Balyasny Asset Management

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

At third quarter’s end, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 30% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CABO over the last 25 quarters. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies has the largest position in Cable One Inc (NYSE:CABO), worth close to $232.4 million, accounting for 0.3% of its total 13F portfolio. The second most bullish fund manager is Gardner Russo & Gardner, managed by Tom Russo, which holds a $159.1 million position; 1.5% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism contain Scott Wallace’s Wallace Capital Management, Ken Griffin’s Citadel Investment Group and Touk Sinantha’s AltraVue Capital. In terms of the portfolio weights assigned to each position Wallace Capital Management allocated the biggest weight to Cable One Inc (NYSE:CABO), around 8.38% of its 13F portfolio. AltraVue Capital is also relatively very bullish on the stock, earmarking 3 percent of its 13F equity portfolio to CABO.

With a general bullishness amongst the heavyweights, some big names have jumped into Cable One Inc (NYSE:CABO) headfirst. GLG Partners, managed by Noam Gottesman, initiated the biggest position in Cable One Inc (NYSE:CABO). GLG Partners had $4.7 million invested in the company at the end of the quarter. Jinghua Yan’s TwinBeech Capital also initiated a $2.9 million position during the quarter. The other funds with new positions in the stock are Greg Eisner’s Engineers Gate Manager, Dmitry Balyasny’s Balyasny Asset Management, and Greg Poole’s Echo Street Capital Management.

Let’s go over hedge fund activity in other stocks similar to Cable One Inc (NYSE:CABO). These stocks are Lennox International Inc. (NYSE:LII), Formula One Group (NASDAQ:FWONA), Gaming and Leisure Properties Inc (NASDAQ:GLPI), Weibo Corp (NASDAQ:WB), Five9 Inc (NASDAQ:FIVN), Dr. Reddy’s Laboratories Limited (NYSE:RDY), and Comerica Incorporated (NYSE:CMA). This group of stocks’ market caps match CABO’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 29.4 hedge funds with bullish positions and the average amount invested in these stocks was $826 million. That figure was $585 million in CABO’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (NYSE:RDY) is the least popular one with only 12 bullish hedge fund positions. Cable One Inc (NYSE:CABO) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CABO is 49.8. 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 negative signal and 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 surpassed the market again by 5.1 percentage points. Unfortunately CABO wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CABO investors were disappointed as the stock returned -5.8% 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 most of these stocks already outperformed the market in 2021.

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