Here is What Hedge Funds Think About Angi Inc. (ANGI)

Last year we predicted the arrival of the first US recession since 2009 and we told in advance that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Angi Inc. (NASDAQ:ANGI).

Is Angi Inc. (NASDAQ:ANGI) the right investment to pursue these days? Money managers were betting on the stock. The number of long hedge fund bets increased by 4 recently. Angi Inc. (NASDAQ:ANGI) was in 35 hedge funds’ portfolios at the end of March. The all time high for this statistic is 48. Our calculations also showed that ANGI isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 31 hedge funds in our database with ANGI positions at the end of the fourth quarter.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Steven Cohen of Point72 Asset Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s check out the recent hedge fund action surrounding Angi Inc. (NASDAQ:ANGI).

Do Hedge Funds Think ANGI Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 35 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in ANGI over the last 23 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).

The largest stake in Angi Inc. (NASDAQ:ANGI) was held by ShawSpring Partners, which reported holding $44.6 million worth of stock at the end of December. It was followed by Point72 Asset Management with a $43.4 million position. Other investors bullish on the company included Ulysses Management, Renaissance Technologies, and VGI Partners. In terms of the portfolio weights assigned to each position ShawSpring Partners allocated the biggest weight to Angi Inc. (NASDAQ:ANGI), around 5.56% of its 13F portfolio. Ulysses Management is also relatively very bullish on the stock, earmarking 3.56 percent of its 13F equity portfolio to ANGI.

As aggregate interest increased, specific money managers were breaking ground themselves. Cinctive Capital Management, managed by Richard SchimeláandáLawrence Sapanski, established the most outsized position in Angi Inc. (NASDAQ:ANGI). Cinctive Capital Management had $2.2 million invested in the company at the end of the quarter. Mika Toikka’s AlphaCrest Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new ANGI investors: Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Anthony S. Daffer’s Provenire Capital, and Jonathan Soros’s JS Capital.

Let’s now review hedge fund activity in other stocks similar to Angi Inc. (NASDAQ:ANGI). These stocks are Littelfuse, Inc. (NASDAQ:LFUS), Penske Automotive Group, Inc. (NYSE:PAG), Life Storage, Inc. (NYSE:LSI), OGE Energy Corp. (NYSE:OGE), JetBlue Airways Corporation (NASDAQ:JBLU), Ritchie Bros. Auctioneers Incorporated (NYSE:RBA), and Pacific Biosciences of California, Inc. (NASDAQ:PACB). All of these stocks’ market caps match ANGI’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $463 million. That figure was $309 million in ANGI’s case. JetBlue Airways Corporation (NASDAQ:JBLU) is the most popular stock in this table. On the other hand Penske Automotive Group, Inc. (NYSE:PAG) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Angi Inc. (NASDAQ:ANGI) is more popular among hedge funds. Our overall hedge fund sentiment score for ANGI is 80.9. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 19.3% in 2021 through June 25th and still managed to beat the market by 4.8 percentage points. Hedge funds were also right about betting on ANGI, though not to the same extent, as the stock returned 10.7% since the end of March (through June 25th) and outperformed the market as well.

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Disclosure: None. This article was originally published at Insider Monkey.