The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Clear Channel Outdoor Holdings, Inc. (NYSE:CCO).
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) was in 29 hedge funds’ portfolios at the end of March. The all time high for this statistic is 44. CCO investors should pay attention to a decrease in enthusiasm from smart money of late. There were 31 hedge funds in our database with CCO positions at the end of the fourth quarter. Our calculations also showed that CCO isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the 21st century investor’s toolkit there are a lot of formulas stock traders use to appraise publicly traded companies. A couple of the most useful formulas are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the top investment managers can outclass their index-focused peers by a significant amount (see the details here). 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 .
Nick Thakore of Diametric Capital
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Do Hedge Funds Think CCO Is A Good Stock To Buy Now?
At the end of March, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -6% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CCO over the last 23 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, Mason Capital Management held the most valuable stake in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), which was worth $40.6 million at the end of the fourth quarter. On the second spot was D E Shaw which amassed $25 million worth of shares. Legion Partners Asset Management, Brigade Capital, and Rubric Capital 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 Mason Capital Management allocated the biggest weight to Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), around 9.27% of its 13F portfolio. Legion Partners Asset Management is also relatively very bullish on the stock, setting aside 4.67 percent of its 13F equity portfolio to CCO.
Because Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) has experienced declining sentiment from the smart money, logic holds that there lies a certain “tier” of funds that elected to cut their positions entirely by the end of the first quarter. Interestingly, David Abrams’s Abrams Capital Management sold off the largest investment of the “upper crust” of funds followed by Insider Monkey, worth about $5.5 million in stock. Jerome L. Simon’s fund, Lonestar Capital Management, also said goodbye to its stock, about $3.1 million worth. These bearish behaviors are interesting, 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 Clear Channel Outdoor Holdings, Inc. (NYSE:CCO). These stocks are TCR2 Therapeutics Inc. (NASDAQ:TCRR), Container Store Group Inc (NYSE:TCS), OraSure Technologies, Inc. (NASDAQ:OSUR), Knoll Inc (NYSE:KNL), PAE Incorporated (NASDAQ:PAE), Banco Macro SA (NYSE:BMA), and Univest Financial Corporation (NASDAQ:UVSP). This group of stocks’ market values resemble CCO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TCRR | 16 | 166082 | 0 |
| TCS | 18 | 362198 | -2 |
| OSUR | 13 | 62117 | -2 |
| KNL | 10 | 12787 | 3 |
| PAE | 19 | 101479 | 3 |
| BMA | 8 | 30485 | 1 |
| UVSP | 9 | 94462 | -2 |
| Average | 13.3 | 118516 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.3 hedge funds with bullish positions and the average amount invested in these stocks was $119 million. That figure was $194 million in CCO’s case. PAE Incorporated (NASDAQ:PAE) is the most popular stock in this table. On the other hand Banco Macro SA (NYSE:BMA) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is more popular among hedge funds. Our overall hedge fund sentiment score for CCO is 72.8. 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. 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 returned 22.8% in 2021 through July 2nd but still managed to beat the market by 6 percentage points. Hedge funds were also right about betting on CCO as the stock returned 41.1% since the end of March (through 7/2) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Clear Channel Outdoor Holdings Inc. (NYSE:CCO)
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Disclosure: None. This article was originally published at Insider Monkey.
