At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not Hyzon Motors Inc. (NASDAQ:HYZN) makes for a good investment right now.
Is Hyzon Motors Inc. (NASDAQ:HYZN) going to take off soon? The smart money was taking a bullish view. The number of bullish hedge fund bets advanced by 22 recently. Hyzon Motors Inc. (NASDAQ:HYZN) was in 22 hedge funds’ portfolios at the end of September. Our calculations also showed that HYZN isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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. With all of this in mind we’re going to take a gander at the key hedge fund action encompassing Hyzon Motors Inc. (NASDAQ:HYZN).
Dmitry Balyasny of Balyasny Asset Management
Do Hedge Funds Think HYZN Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22 from one quarter earlier. By comparison, 0 hedge funds held shares or bullish call options in HYZN a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Hyzon Motors Inc. (NASDAQ:HYZN) was held by Balyasny Asset Management, which reported holding $18 million worth of stock at the end of September. It was followed by Antara Capital with a $14.6 million position. Other investors bullish on the company included Luxor Capital Group, Millennium Management, and Soros Fund Management. In terms of the portfolio weights assigned to each position DSAM Partners allocated the biggest weight to Hyzon Motors Inc. (NASDAQ:HYZN) , around 1.42% of its 13F portfolio. Antara Capital is also relatively very bullish on the stock, earmarking 1.11 percent of its 13F equity portfolio to HYZN.
Now, some big names were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the largest position in Hyzon Motors Inc. (NASDAQ:HYZN) . Balyasny Asset Management had $18 million invested in the company at the end of the quarter. Himanshu Gulati’s Antara Capital also initiated a $14.6 million position during the quarter. The following funds were also among the new HYZN investors: Christian Leone’s Luxor Capital Group, Israel Englander’s Millennium Management, and George Soros’s Soros Fund Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Hyzon Motors Inc. (NASDAQ:HYZN) but similarly valued. These stocks are Houghton Mifflin Harcourt Co (NASDAQ:HMHC), WideOpenWest, Inc. (NYSE:WOW), Porch Group, Inc. (NASDAQ:PRCH), Peabody Energy Corporation (NYSE:BTU), The Beachbody Company Inc. (NYSE:BODY), CBIZ, Inc. (NYSE:CBZ), and Patterson-UTI Energy, Inc. (NASDAQ:PTEN). This group of stocks’ market values resemble HYZN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HMHC | 27 | 260287 | 6 |
| WOW | 16 | 267197 | -3 |
| PRCH | 16 | 406859 | -2 |
| BTU | 29 | 639384 | 11 |
| BODY | 13 | 26485 | 13 |
| CBZ | 16 | 248276 | 1 |
| PTEN | 20 | 140150 | 2 |
| Average | 19.6 | 284091 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.6 hedge funds with bullish positions and the average amount invested in these stocks was $284 million. That figure was $67 million in HYZN’s case. Peabody Energy Corporation (NYSE:BTU) is the most popular stock in this table. On the other hand The Beachbody Company Inc. (NYSE:BODY) is the least popular one with only 13 bullish hedge fund positions. Hyzon Motors Inc. (NASDAQ:HYZN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HYZN is 55. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately HYZN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HYZN were disappointed as the stock returned -6.5% since the end of September (through 12/31) 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.
