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 PotlatchDeltic Corporation (NASDAQ:PCH).
PotlatchDeltic Corporation (NASDAQ:PCH) was in 22 hedge funds’ portfolios at the end of September. The all time high for this statistic is 28. PCH has experienced a decrease in hedge fund interest of late. There were 28 hedge funds in our database with PCH holdings at the end of June. Our calculations also showed that PCH 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 view the key hedge fund action encompassing PotlatchDeltic Corporation (NASDAQ:PCH).
Cliff Asness of AQR Capital Management
Do Hedge Funds Think PCH Is A Good Stock To Buy Now?
At the end of September, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -21% from one quarter earlier. On the other hand, there were a total of 26 hedge funds with a bullish position in PCH a year ago. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
Among these funds, AQR Capital Management held the most valuable stake in PotlatchDeltic Corporation (NASDAQ:PCH), which was worth $14 million at the end of the third quarter. On the second spot was Inclusive Capital which amassed $13.4 million worth of shares. ExodusPoint Capital, Renaissance Technologies, and Fisher Asset 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 Intrepid Capital Management allocated the biggest weight to PotlatchDeltic Corporation (NASDAQ:PCH), around 1.64% of its 13F portfolio. Inclusive Capital is also relatively very bullish on the stock, designating 1.46 percent of its 13F equity portfolio to PCH.
Seeing as PotlatchDeltic Corporation (NASDAQ:PCH) has witnessed a decline in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedge funds who were dropping their full holdings heading into Q4. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the biggest investment of the 750 funds followed by Insider Monkey, valued at close to $4.3 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also sold off its stock, about $2.8 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 6 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as PotlatchDeltic Corporation (NASDAQ:PCH) but similarly valued. We will take a look at Copa Holdings, S.A. (NYSE:CPA), CommVault Systems, Inc. (NASDAQ:CVLT), 3D Systems Corporation (NYSE:DDD), Acushnet Holdings Corp. (NYSE:GOLF), Arconic Corporation (NYSE:ARNC), Galapagos NV (NASDAQ:GLPG), and Blackbaud, Inc. (NASDAQ:BLKB). This group of stocks’ market valuations are similar to PCH’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CPA | 16 | 229501 | 2 |
| CVLT | 19 | 588850 | -9 |
| DDD | 18 | 284758 | -2 |
| GOLF | 20 | 64313 | -1 |
| ARNC | 26 | 763617 | -4 |
| GLPG | 22 | 342514 | -1 |
| BLKB | 16 | 156265 | 1 |
| Average | 19.6 | 347117 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.6 hedge funds with bullish positions and the average amount invested in these stocks was $347 million. That figure was $86 million in PCH’s case. Arconic Corporation (NYSE:ARNC) is the most popular stock in this table. On the other hand Copa Holdings, S.A. (NYSE:CPA) is the least popular one with only 16 bullish hedge fund positions. PotlatchDeltic Corporation (NASDAQ:PCH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PCH is 52.6. 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 PCH as the stock returned 26.1% since the end of Q3 (through 12/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Potlatchdeltic Corp (NASDAQ:PCH)
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Disclosure: None. This article was originally published at Insider Monkey.
