Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of March. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Eldorado Resorts Inc (NASDAQ:ERI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Eldorado Resorts Inc (NASDAQ:ERI) investors should be aware of an increase in activity from the world’s largest hedge funds of late. ERI was in 31 hedge funds’ portfolios at the end of March. There were 29 hedge funds in our database with ERI positions at the end of the previous quarter. Our calculations also showed that eri isn’t among the 30 most popular stocks among hedge funds.
At the moment there are tons of formulas investors put to use to appraise their stock investments. Some of the most useful formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass the market by a significant margin (see the details here).
Let’s analyze the latest hedge fund action regarding Eldorado Resorts Inc (NASDAQ:ERI).
What does the smart money think about Eldorado Resorts Inc (NASDAQ:ERI)?
At the end of the first quarter, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ERI over the last 15 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Park West Asset Management, managed by Peter S. Park, holds the number one position in Eldorado Resorts Inc (NASDAQ:ERI). Park West Asset Management has a $117.9 million position in the stock, comprising 5.2% of its 13F portfolio. Sitting at the No. 2 spot is Highline Capital Management, led by Jacob Doft, holding a $75.8 million position; 4.8% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors that are bullish contain Bryant Regan’s Lafitte Capital Management, Cliff Asness’s AQR Capital Management and Roberto Mignone’s Bridger Management.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Interval Partners, managed by Gregg Moskowitz, initiated the most valuable position in Eldorado Resorts Inc (NASDAQ:ERI). Interval Partners had $20.1 million invested in the company at the end of the quarter. Anthony Joseph Vaccarino’s North Fourth Asset Management also initiated a $10.3 million position during the quarter. The other funds with new positions in the stock are Brian Gustavson and Andrew Haley’s 1060 Capital Management, Steve Cohen’s Point72 Asset Management, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s also examine hedge fund activity in other stocks similar to Eldorado Resorts Inc (NASDAQ:ERI). These stocks are TreeHouse Foods Inc. (NYSE:THS), Spirit Airlines Incorporated (NYSE:SAVE), China Biologic Products Holdings, Inc. (NASDAQ:CBPO), and Manhattan Associates, Inc. (NASDAQ:MANH). This group of stocks’ market values resemble ERI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| THS | 23 | 230182 | 4 |
| SAVE | 34 | 381981 | 4 |
| CBPO | 8 | 130192 | 1 |
| MANH | 18 | 337275 | -2 |
| Average | 20.75 | 269908 | 1.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $270 million. That figure was $550 million in ERI’s case. Spirit Airlines Incorporated (NYSE:SAVE) is the most popular stock in this table. On the other hand China Biologic Products Holdings, Inc. (NASDAQ:CBPO) is the least popular one with only 8 bullish hedge fund positions. Eldorado Resorts Inc (NASDAQ:ERI) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on ERI as the stock returned 6.1% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.
