We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Evercore Inc. (NYSE:EVR).
Evercore Inc. (NYSE:EVR) was in 25 hedge funds’ portfolios at the end of the first quarter of 2019. EVR investors should be aware of an increase in support from the world’s most elite money managers lately. There were 24 hedge funds in our database with EVR holdings at the end of the previous quarter. Our calculations also showed that evr isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Noam Gottesman, GLG Partners
We’re going to analyze the key hedge fund action surrounding Evercore Inc. (NYSE:EVR).
How have hedgies been trading Evercore Inc. (NYSE:EVR)?
At Q1’s end, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards EVR over the last 15 quarters. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
The largest stake in Evercore Inc. (NYSE:EVR) was held by Renaissance Technologies, which reported holding $74.6 million worth of stock at the end of March. It was followed by Millennium Management with a $74.3 million position. Other investors bullish on the company included Citadel Investment Group, GLG Partners, and Junto Capital Management.
As one would reasonably expect, specific money managers have jumped into Evercore Inc. (NYSE:EVR) headfirst. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, created the most valuable position in Evercore Inc. (NYSE:EVR). Marshall Wace LLP had $3.1 million invested in the company at the end of the quarter. Phil Frohlich’s Prescott Group Capital Management also made a $2.3 million investment in the stock during the quarter. The other funds with brand new EVR positions are Jeffrey Talpins’s Element Capital Management, Steve Cohen’s Point72 Asset Management, and Mike Vranos’s Ellington.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Evercore Inc. (NYSE:EVR) but similarly valued. We will take a look at Schneider National, Inc. (NYSE:SNDR), GrafTech International Ltd. (NYSE:EAF), United Bankshares, Inc. (NASDAQ:UBSI), and Ritchie Bros. Auctioneers Incorporated (NYSE:RBA). This group of stocks’ market caps are closest to EVR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SNDR | 19 | 121921 | -1 |
| EAF | 24 | 142699 | 1 |
| UBSI | 8 | 28300 | -2 |
| RBA | 15 | 151367 | 3 |
| Average | 16.5 | 111072 | 0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $343 million in EVR’s case. GrafTech International Ltd. (NYSE:EAF) is the most popular stock in this table. On the other hand United Bankshares, Inc. (NASDAQ:UBSI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Evercore Inc. (NYSE:EVR) is more popular among hedge funds. 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. Unfortunately EVR wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on EVR were disappointed as the stock returned -12.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
