Here is What Hedge Funds Think About Camping World Holdings, Inc. (CWH)

In this article we will check out the progression of hedge fund sentiment towards Camping World Holdings, Inc. (NYSE:CWH) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is Camping World Holdings, Inc. (NYSE:CWH) going to take off soon? Hedge funds were getting more optimistic. The number of bullish hedge fund bets improved by 3 in recent months. Camping World Holdings, Inc. (NYSE:CWH) was in 23 hedge funds’ portfolios at the end of September. The all time high for this statistic is 29. Our calculations also showed that CWH isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

Jeffrey Gendell of Tontine Asset Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Keeping this in mind we’re going to take a look at the latest hedge fund action regarding Camping World Holdings, Inc. (NYSE:CWH).

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

At the end of September, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the previous quarter. On the other hand, there were a total of 29 hedge funds with a bullish position in CWH a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, David Abrams’s Abrams Capital Management has the largest position in Camping World Holdings, Inc. (NYSE:CWH), worth close to $198.6 million, comprising 4.3% of its total 13F portfolio. The second most bullish fund manager is Jeffrey Gendell of Tontine Asset Management, with a $32.6 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Some other peers with similar optimism comprise D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Abrams Capital Management allocated the biggest weight to Camping World Holdings, Inc. (NYSE:CWH), around 4.33% of its 13F portfolio. Tontine Asset Management is also relatively very bullish on the stock, setting aside 2.8 percent of its 13F equity portfolio to CWH.

Now, key money managers were leading the bulls’ herd. LMR Partners, managed by Ben Levine, Andrew Manuel and Stefan Renold, assembled the most valuable position in Camping World Holdings, Inc. (NYSE:CWH). LMR Partners had $3.5 million invested in the company at the end of the quarter. Renaissance Technologies also made a $2.4 million investment in the stock during the quarter. The other funds with brand new CWH positions are Jinghua Yan’s TwinBeech Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks similar to Camping World Holdings, Inc. (NYSE:CWH). These stocks are LCI Industries (NYSE:LCII), Frontier Group Holdings Inc. (NASDAQ:ULCC), Group 1 Automotive, Inc. (NYSE:GPI), fuboTV Inc. (NYSE:FUBO), TechnipFMC plc (NYSE:FTI), HB Fuller Co (NYSE:FUL), and ONE Gas Inc (NYSE:OGS). This group of stocks’ market valuations match CWH’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 17.4 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $324 million in CWH’s case. TechnipFMC plc (NYSE:FTI) is the most popular stock in this table. On the other hand HB Fuller Co (NYSE:FUL) is the least popular one with only 9 bullish hedge fund positions. Camping World Holdings, Inc. (NYSE:CWH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CWH is 68.6. 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 positive signal but 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately CWH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CWH were disappointed as the stock returned 3.3% since the end of September (through 12/9) 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 many of these stocks already outperformed the market since 2019.

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

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