Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4 years and analyze what the smart money thinks of Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) based on that data.
Is Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) a buy, sell, or hold? The smart money is betting on the stock. The number of long hedge fund bets went up by 5 recently. Our calculations also showed that SPWH isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
To the average investor there are a large number of methods investors have at their disposal to value publicly traded companies. A couple of the less utilized methods are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can beat their index-focused peers by a very impressive amount (see the details here).
J. Carlo Cannell of Cannell Capital
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. We’re going to take a look at the key hedge fund action regarding Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH).
Hedge fund activity in Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH)
Heading into the fourth quarter of 2019, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 31% from the second quarter of 2019. Below, you can check out the change in hedge fund sentiment towards SPWH over the last 17 quarters. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
The largest stake in Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) was held by Cannell Capital, which reported holding $10.2 million worth of stock at the end of September. It was followed by Scion Asset Management with a $8.4 million position. Other investors bullish on the company included Arbiter Partners Capital Management, Marshall Wace, and D E Shaw. In terms of the portfolio weights assigned to each position Scion Asset Management allocated the biggest weight to Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH), around 14.12% of its 13F portfolio. Cannell Capital is also relatively very bullish on the stock, dishing out 3.3 percent of its 13F equity portfolio to SPWH.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) headfirst. Marshall Wace, managed by Paul Marshall and Ian Wace, created the biggest position in Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH). Marshall Wace had $3.2 million invested in the company at the end of the quarter. Brian C. Freckmann’s Lyon Street Capital also initiated a $0.9 million position during the quarter. The following funds were also among the new SPWH investors: Mark Broach’s Manatuck Hill Partners, David Harding’s Winton Capital Management, and Minhua Zhang’s Weld Capital Management.
Let’s go over hedge fund activity in other stocks similar to Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH). We will take a look at Select Bancorp, Inc. (NASDAQ:SLCT), Northern Dynasty Minerals Ltd. (NYSE:NAK), Trecora Resources (NYSE:TREC), and Tailored Brands, Inc. (NYSE:TLRD). This group of stocks’ market values are closest to SPWH’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SLCT | 5 | 10328 | 1 |
| NAK | 5 | 5817 | -1 |
| TREC | 10 | 23735 | 2 |
| TLRD | 12 | 21294 | -6 |
| Average | 8 | 15294 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $43 million in SPWH’s case. Tailored Brands, Inc. (NYSE:TLRD) is the most popular stock in this table. On the other hand Select Bancorp, Inc. (NASDAQ:SLCT) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Hedge funds were also right about betting on SPWH as the stock returned 41.1% during the first two months of Q4 and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.
