Here is What Hedge Funds Think About Bluegreen Vacations Holding Corporation (BVH)

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Bluegreen Vacations Holding Corporation (NYSE:BVH).

Bluegreen Vacations Holding Corporation (NYSE:BVH) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. Our calculations also showed that BVH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). At the end of this article we will also compare BVH to other stocks including Trevena Inc (NASDAQ:TRVN), Mayville Engineering Company, Inc. (NYSE:MEC), and Immersion Corporation (NASDAQ:IMMR) to get a better sense of its popularity.

So, why do we pay attention to hedge fund sentiment before making any investment decisions? 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 S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.

Bart Baum of Ionic Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. 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. Now let’s take a look at the recent hedge fund action regarding Bluegreen Vacations Holding Corporation (NYSE:BVH).

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

At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards BVH over the last 23 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Angelo Gordon & Co held the most valuable stake in Bluegreen Vacations Holding Corporation (NYSE:BVH), which was worth $22.2 million at the end of the fourth quarter. On the second spot was Renaissance Technologies which amassed $4.6 million worth of shares. Arrowstreet Capital, Diametric Capital, and Two Sigma Advisors were 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 Angelo Gordon & Co allocated the biggest weight to Bluegreen Vacations Holding Corporation (NYSE:BVH), around 1.93% of its 13F portfolio. Diametric Capital is also relatively very bullish on the stock, earmarking 0.26 percent of its 13F equity portfolio to BVH.

Since Bluegreen Vacations Holding Corporation (NYSE:BVH) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds that slashed their full holdings in the first quarter. Intriguingly, Bart Baum’s Ionic Capital Management dumped the largest position of the 750 funds followed by Insider Monkey, totaling close to $0.6 million in stock, and Noam Gottesman’s GLG Partners was right behind this move, as the fund dumped about $0.5 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks similar to Bluegreen Vacations Holding Corporation (NYSE:BVH). These stocks are Trevena Inc (NASDAQ:TRVN), Mayville Engineering Company, Inc. (NYSE:MEC), Immersion Corporation (NASDAQ:IMMR), NuStar GP Holdings, LLC (NYSE:NSH), First Choice Bancorp (NASDAQ:FCBP), Progenity, Inc. (NASDAQ:PROG), and Infinity Pharmaceuticals Inc. (NASDAQ:INFI). This group of stocks’ market values resemble BVH’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 12.3 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was $29 million in BVH’s case. NuStar GP Holdings, LLC (NYSE:NSH) is the most popular stock in this table. On the other hand Mayville Engineering Company, Inc. (NYSE:MEC) is the least popular one with only 3 bullish hedge fund positions. Bluegreen Vacations Holding Corporation (NYSE:BVH) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BVH is 24.6. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 surpassed the market again by 4.8 percentage points. Unfortunately BVH wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); BVH investors were disappointed as the stock returned -5.4% since the end of March (through 6/25) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.

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

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