At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not YETI Holdings, Inc. (NYSE:YETI) makes for a good investment right now.
Is YETI Holdings, Inc. (NYSE:YETI) the right investment to pursue these days? Hedge funds were in a bearish mood. The number of long hedge fund positions dropped by 5 recently. YETI Holdings, Inc. (NYSE:YETI) was in 29 hedge funds’ portfolios at the end of September. The all time high for this statistic is 34. Our calculations also showed that YETI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 34 hedge funds in our database with YETI positions at the end of the second quarter.
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 let’s take a look at the key hedge fund action surrounding YETI Holdings, Inc. (NYSE:YETI).
Alex Litowitz of Magnetar Capital
Do Hedge Funds Think YETI Is A Good Stock To Buy Now?
At Q3’s end, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the previous quarter. By comparison, 29 hedge funds held shares or bullish call options in YETI a year ago. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were adding to their stakes significantly (or already accumulated large positions).
Among these funds, Arrowstreet Capital held the most valuable stake in YETI Holdings, Inc. (NYSE:YETI), which was worth $79.8 million at the end of the third quarter. On the second spot was Citadel Investment Group which amassed $33.2 million worth of shares. Marshall Wace LLP, Citadel Investment Group, and Chiron Investment 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 Deep Field Asset Management allocated the biggest weight to YETI Holdings, Inc. (NYSE:YETI), around 9.23% of its 13F portfolio. Chiron Investment Management is also relatively very bullish on the stock, earmarking 2.2 percent of its 13F equity portfolio to YETI.
Due to the fact that YETI Holdings, Inc. (NYSE:YETI) has experienced falling interest from hedge fund managers, we can see that there were a few fund managers that decided to sell off their full holdings last quarter. It’s worth mentioning that Renaissance Technologies dropped the largest position of the 750 funds watched by Insider Monkey, valued at close to $12.8 million in stock. Michael Gelband’s fund, ExodusPoint Capital, also dumped its stock, about $4.9 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 5 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as YETI Holdings, Inc. (NYSE:YETI) but similarly valued. These stocks are BRP Inc. (NASDAQ:DOOO), People’s United Financial, Inc. (NASDAQ:PBCT), Encompass Health Corporation (NYSE:EHC), Stevanato Group S.p.A. (NYSE:STVN), Sotera Health Company (NASDAQ:SHC), ITT Inc. (NYSE:ITT), and Sarepta Therapeutics Inc (NASDAQ:SRPT). This group of stocks’ market values are similar to YETI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DOOO | 16 | 119867 | -3 |
| PBCT | 19 | 222656 | -5 |
| EHC | 44 | 708069 | 2 |
| STVN | 16 | 142293 | 16 |
| SHC | 20 | 396497 | 2 |
| ITT | 20 | 195476 | 0 |
| SRPT | 28 | 836968 | -6 |
| Average | 23.3 | 374547 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.3 hedge funds with bullish positions and the average amount invested in these stocks was $375 million. That figure was $256 million in YETI’s case. Encompass Health Corporation (NYSE:EHC) is the most popular stock in this table. On the other hand BRP Inc. (NASDAQ:DOOO) is the least popular one with only 16 bullish hedge fund positions. YETI Holdings, Inc. (NYSE:YETI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for YETI is 48.8. 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 gained 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on YETI as the stock returned 7.6% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Yeti Holdings Inc. (NYSE:YETI)
Follow Yeti Holdings Inc. (NYSE:YETI)
Suggested Articles:
Disclosure: None. This article was originally published at Insider Monkey.
