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 PBF Logistics LP (NYSE:PBFX) based on that data.
Hedge fund interest in PBF Logistics LP (NYSE:PBFX) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare PBFX to other stocks including Geopark Ltd (NYSE:GPRK), ProSight Global, Inc. (NYSE:PROS), and TPG RE Finance Trust, Inc. (NYSE:TRTX) to get a better sense of its popularity.
Video: Watch our video about the top 5 most popular hedge fund stocks.
At the moment there are a large number of signals market participants use to size up their stock investments. A couple of the most under-the-radar signals are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the broader indices by a solid margin (see the details here).
Matthew Hulsizer of PEAK6 Capital
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, legendary investor Bill Miller told investors to sell 7 extremely popular recession stocks last month. So, we went through his list and recommended another stock with 100% upside potential instead. We interview hedge fund managers and ask them about their best ideas. You can watch our latest hedge fund manager interview here and find out the name of the large-cap healthcare stock that Sio Capital’s Michael Castor expects to double. 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 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 take a peek at the latest hedge fund action encompassing PBF Logistics LP (NYSE:PBFX).
What does smart money think about PBF Logistics LP (NYSE:PBFX)?
At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. On the other hand, there were a total of 2 hedge funds with a bullish position in PBFX a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
More specifically, PEAK6 Capital Management was the largest shareholder of PBF Logistics LP (NYSE:PBFX), with a stake worth $0.7 million reported as of the end of September. Trailing PEAK6 Capital Management was Arrowstreet Capital, which amassed a stake valued at $0.6 million. PEAK6 Capital Management was 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 683 Capital Partners allocated the biggest weight to PBF Logistics LP (NYSE:PBFX), around 0.01% of its 13F portfolio. Arrowstreet Capital is also relatively very bullish on the stock, setting aside 0.0016 percent of its 13F equity portfolio to PBFX.
Due to the fact that PBF Logistics LP (NYSE:PBFX) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few hedge funds who sold off their positions entirely in the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group sold off the biggest investment of the “upper crust” of funds followed by Insider Monkey, totaling about $0.6 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund cut about $0.2 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks similar to PBF Logistics LP (NYSE:PBFX). We will take a look at Geopark Ltd (NYSE:GPRK), ProSight Global, Inc. (NYSE:PROS), TPG RE Finance Trust, Inc. (NYSE:TRTX), and Amyris Inc (NASDAQ:AMRS). This group of stocks’ market valuations match PBFX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GPRK | 13 | 49368 | 2 |
| PROS | 4 | 3547 | 0 |
| TRTX | 17 | 29436 | 2 |
| AMRS | 10 | 30419 | 0 |
| Average | 11 | 28193 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $1 million in PBFX’s case. TPG RE Finance Trust, Inc. (NYSE:TRTX) is the most popular stock in this table. On the other hand ProSight Global, Inc. (NYSE:PROS) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks PBF Logistics LP (NYSE:PBFX) is even less popular than PROS. Hedge funds clearly dropped the ball on PBFX as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. 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 7.9% in 2020 through May 22nd and still beat the market by 15.6 percentage points. A small number of hedge funds were also right about betting on PBFX as the stock returned 64.9% so far in the second quarter and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.
