We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think of Envestnet Inc (NYSE:ENV) based on that data.
Is Envestnet Inc (NYSE:ENV) a buy here? The best stock pickers are in a pessimistic mood. The number of long hedge fund bets were trimmed by 1 in recent months. Our calculations also showed that ENV isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
According to most investors, hedge funds are perceived as unimportant, old financial tools of the past. While there are over 8000 funds with their doors open at the moment, Our experts choose to focus on the aristocrats of this group, approximately 850 funds. It is estimated that this group of investors handle most of the hedge fund industry’s total capital, and by monitoring their highest performing stock picks, Insider Monkey has identified several investment strategies that have historically beaten Mr. Market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
James Dinan of York Capital Management
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind let’s view the latest hedge fund action encompassing Envestnet Inc (NYSE:ENV).
How have hedgies been trading Envestnet Inc (NYSE:ENV)?
At the end of the first quarter, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ENV over the last 18 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, York Capital Management held the most valuable stake in Envestnet Inc (NYSE:ENV), which was worth $24.5 million at the end of the third quarter. On the second spot was Millennium Management which amassed $8.7 million worth of shares. Greenhouse Funds, Whetstone Capital Advisors, and Strycker View Capital 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 Strycker View Capital allocated the biggest weight to Envestnet Inc (NYSE:ENV), around 7.85% of its 13F portfolio. Whetstone Capital Advisors is also relatively very bullish on the stock, earmarking 2.85 percent of its 13F equity portfolio to ENV.
Due to the fact that Envestnet Inc (NYSE:ENV) has faced a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedge funds who sold off their entire stakes heading into Q4. Interestingly, Robert Joseph Caruso’s Select Equity Group dropped the largest position of the “upper crust” of funds watched by Insider Monkey, worth an estimated $15 million in stock. Brandon Haley’s fund, Holocene Advisors, also sold off its stock, about $3.4 million worth. These moves are important to note, as aggregate hedge fund interest fell by 1 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Envestnet Inc (NYSE:ENV) but similarly valued. These stocks are Vertiv Holdings Co (NYSE:VRT), Continental Resources, Inc. (NYSE:CLR), Stantec Inc. (NYSE:STN), and Brixmor Property Group Inc (NYSE:BRX). All of these stocks’ market caps are similar to ENV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VRT | 39 | 540556 | 4 |
| CLR | 26 | 66933 | -12 |
| STN | 12 | 52596 | 3 |
| BRX | 28 | 79124 | 12 |
| Average | 26.25 | 184802 | 1.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $185 million. That figure was $75 million in ENV’s case. Vertiv Holdings Co (NYSE:VRT) is the most popular stock in this table. On the other hand Stantec Inc. (NYSE:STN) is the least popular one with only 12 bullish hedge fund positions. Envestnet Inc (NYSE:ENV) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd and still beat the market by 15.9 percentage points. A small number of hedge funds were also right about betting on ENV as the stock returned 39.4% during the second quarter and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
