The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on June 30th. We at Insider Monkey have made an extensive database of more than 873 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Vinci Partners Investments Ltd. (NASDAQ:VINP) based on those filings.
Is Vinci Partners Investments Ltd. (NASDAQ:VINP) a worthy investment now? Prominent investors were in a pessimistic mood. The number of long hedge fund bets fell by 3 recently. Vinci Partners Investments Ltd. (NASDAQ:VINP) was in 10 hedge funds’ portfolios at the end of June. The all time high for this statistic is 13. Our calculations also showed that VINP isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Robert Pohly of Samlyn Capital
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Do Hedge Funds Think VINP Is A Good Stock To Buy Now?
At second quarter’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -23% from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in VINP a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in Vinci Partners Investments Ltd. (NASDAQ:VINP). Adage Capital Management has a $42.4 million position in the stock, comprising 0.1% of its 13F portfolio. On Adage Capital Management’s heels is Samlyn Capital, managed by Robert Pohly, which holds a $26.4 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism comprise Renaissance Technologies, Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors and Michael Rockefeller and KarláKroeker’s Woodline Partners. In terms of the portfolio weights assigned to each position Samlyn Capital allocated the biggest weight to Vinci Partners Investments Ltd. (NASDAQ:VINP), around 0.39% of its 13F portfolio. Gillson Capital is also relatively very bullish on the stock, earmarking 0.17 percent of its 13F equity portfolio to VINP.
Due to the fact that Vinci Partners Investments Ltd. (NASDAQ:VINP) has witnessed falling interest from the aggregate hedge fund industry, we can see that there is a sect of money managers that elected to cut their positions entirely in the second quarter. Interestingly, Israel Englander’s Millennium Management dropped the biggest investment of the 750 funds tracked by Insider Monkey, comprising close to $3.9 million in stock, and Joseph Samuels’s Islet Management was right behind this move, as the fund said goodbye to about $3.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds in the second quarter.
Let’s also examine hedge fund activity in other stocks similar to Vinci Partners Investments Ltd. (NASDAQ:VINP). These stocks are Home Point Capital Inc. (NASDAQ:HMPT), Wabash National Corporation (NYSE:WNC), ACCO Brands Corporation (NYSE:ACCO), Gladstone Commercial Corporation (NASDAQ:GOOD), PAE Incorporated (NASDAQ:PAE), Echo Global Logistics, Inc. (NASDAQ:ECHO), and Photronics, Inc. (NASDAQ:PLAB). This group of stocks’ market caps are closest to VINP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HMPT | 8 | 21501 | -5 |
| WNC | 13 | 58209 | -1 |
| ACCO | 15 | 44581 | 0 |
| GOOD | 6 | 52850 | -1 |
| PAE | 15 | 92108 | -4 |
| ECHO | 14 | 29655 | -2 |
| PLAB | 15 | 80394 | -1 |
| Average | 12.3 | 54185 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.3 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $79 million in VINP’s case. ACCO Brands Corporation (NYSE:ACCO) is the most popular stock in this table. On the other hand Gladstone Commercial Corporation (NASDAQ:GOOD) is the least popular one with only 6 bullish hedge fund positions. Vinci Partners Investments Ltd. (NASDAQ:VINP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for VINP is 47.3. 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 25.7% in 2021 through September 27th and surpassed the market again by 6.2 percentage points. Unfortunately VINP wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); VINP investors were disappointed as the stock returned -3.7% since the end of June (through 9/27) 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.
Follow Vinci Partners Investments Ltd.
Follow Vinci Partners Investments Ltd.
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Disclosure: None. This article was originally published at Insider Monkey.
