The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Herc Holdings Inc. (NYSE:HRI).
Is Herc Holdings Inc. (NYSE:HRI) the right investment to pursue these days? The smart money was getting more bullish. The number of bullish hedge fund positions inched up by 4 recently. Herc Holdings Inc. (NYSE:HRI) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic is 29. Our calculations also showed that HRI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Louis Navellier of Navellier & Associates
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. Now let’s go over the recent hedge fund action surrounding Herc Holdings Inc. (NYSE:HRI).
Do Hedge Funds Think HRI Is A Good Stock To Buy Now?
At the end of September, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 20% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in HRI over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Icahn Capital LP was the largest shareholder of Herc Holdings Inc. (NYSE:HRI), with a stake worth $734.7 million reported as of the end of September. Trailing Icahn Capital LP was GAMCO Investors, which amassed a stake valued at $365.2 million. Impax Asset Management, Electron Capital Partners, and Arrowstreet Capital 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 Electron Capital Partners allocated the biggest weight to Herc Holdings Inc. (NYSE:HRI), around 4.59% of its 13F portfolio. Icahn Capital LP is also relatively very bullish on the stock, dishing out 3.26 percent of its 13F equity portfolio to HRI.
With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Alyeska Investment Group, managed by Anand Parekh, assembled the most outsized position in Herc Holdings Inc. (NYSE:HRI). Alyeska Investment Group had $5.9 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also initiated a $5.2 million position during the quarter. The other funds with brand new HRI positions are Robert Bishop’s Impala Asset Management, Karim Abbadi and Edward McBride’s Centiva Capital, and Louis Navellier’s Navellier & Associates.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Herc Holdings Inc. (NYSE:HRI) but similarly valued. These stocks are The Howard Hughes Corporation (NYSE:HHC), Companhia de Saneamento Basico (NYSE:SBS), Driven Brands Holdings Inc. (NASDAQ:DRVN), Vimeo Inc. (NASDAQ:VMEO), Diversey Holdings, Ltd. (NASDAQ:DSEY), The Wendy’s Company (NASDAQ:WEN), and C3.ai, Inc. (NYSE:AI). All of these stocks’ market caps are similar to HRI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HHC | 25 | 1469334 | 0 |
| SBS | 6 | 250306 | -5 |
| DRVN | 24 | 183807 | 5 |
| VMEO | 36 | 465295 | -12 |
| DSEY | 8 | 140678 | -4 |
| WEN | 33 | 949810 | 3 |
| AI | 24 | 199056 | -5 |
| Average | 22.3 | 522612 | -2.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.3 hedge funds with bullish positions and the average amount invested in these stocks was $523 million. That figure was $1535 million in HRI’s case. Vimeo Inc. (NASDAQ:VMEO) is the most popular stock in this table. On the other hand Companhia de Saneamento Basico (NYSE:SBS) is the least popular one with only 6 bullish hedge fund positions. Herc Holdings Inc. (NYSE:HRI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HRI is 63.8. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on HRI as the stock returned 10.6% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Herc Holdings Inc (NYSE:HRI)
Follow Herc Holdings Inc (NYSE:HRI)
Suggested Articles:
- 15 Biggest Trucking Companies In The World
- 15 Largest Insurance Companies
- 15 Fastest Growing Franchises
Disclosure: None. This article was originally published at Insider Monkey.
