Here is What Hedge Funds Think About Wynn Resorts, Limited (WYNN)

In this article you are going to find out whether hedge funds think Wynn Resorts, Limited (NASDAQ:WYNN) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Wynn Resorts, Limited (NASDAQ:WYNN) was in 49 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 52. WYNN has seen a decrease in hedge fund interest recently. There were 52 hedge funds in our database with WYNN holdings at the end of December. Our calculations also showed that WYNN isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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Gil Simon of SoMa Equity Partners

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

At the end of the first quarter, a total of 49 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards WYNN over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, SoMa Equity Partners held the most valuable stake in Wynn Resorts, Limited (NASDAQ:WYNN), which was worth $231.9 million at the end of the fourth quarter. On the second spot was Iridian Asset Management which amassed $169.6 million worth of shares. Citadel Investment Group, Jericho Capital Asset Management, and D E Shaw 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 0 allocated the biggest weight to Wynn Resorts, Limited (NASDAQ:WYNN), around 9.65% of its 13F portfolio. 0 is also relatively very bullish on the stock, dishing out 7.89 percent of its 13F equity portfolio to WYNN.

Since Wynn Resorts, Limited (NASDAQ:WYNN) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies that elected to cut their entire stakes by the end of the first quarter. Intriguingly, Philippe Laffont’s Coatue Management dropped the largest position of all the hedgies monitored by Insider Monkey, comprising close to $120.8 million in stock, and Lee Ainslie’s Maverick Capital was right behind this move, as the fund dropped about $34 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds by the end of the first quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Wynn Resorts, Limited (NASDAQ:WYNN) but similarly valued. These stocks are ABIOMED, Inc. (NASDAQ:ABMD), PerkinElmer, Inc. (NYSE:PKI), FMC Corporation (NYSE:FMC), Domino’s Pizza, Inc. (NYSE:DPZ), Fair Isaac Corporation (NYSE:FICO), Equitable Holdings, Inc. (NYSE:EQH), and argenx SE (NASDAQ:ARGX). This group of stocks’ market caps are closest to WYNN’s market cap.

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As you can see these stocks had an average of 31.1 hedge funds with bullish positions and the average amount invested in these stocks was $1408 million. That figure was $1074 million in WYNN’s case. Equitable Holdings, Inc. (NYSE:EQH) is the most popular stock in this table. On the other hand ABIOMED, Inc. (NASDAQ:ABMD) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks Wynn Resorts, Limited (NASDAQ:WYNN) is more popular among hedge funds. Our overall hedge fund sentiment score for WYNN is 80.3. 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 17.4% in 2021 through June 18th and still beat the market by 6.1 percentage points. Unfortunately WYNN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on WYNN were disappointed as the stock returned -0.7% since the end of the first quarter (through 6/18) 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 since 2019.

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