Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) based on that data.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) investors should pay attention to a decrease in hedge fund interest recently. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) was in 22 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 25. Our calculations also showed that ZIM 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. Now we’re going to check out the recent hedge fund action encompassing ZIM Integrated Shipping Services Ltd. (NYSE:ZIM).
Ryan Tolkin, CIO of Schonfeld Strategic Advisors
Do Hedge Funds Think ZIM Is A Good Stock To Buy Now?
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -12% from one quarter earlier. By comparison, 0 hedge funds held shares or bullish call options in ZIM a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Renaissance Technologies held the most valuable stake in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), which was worth $118.8 million at the end of the third quarter. On the second spot was Abrams Bison Investments which amassed $79.4 million worth of shares. Arrowstreet Capital, King Street Capital, and Citadel Investment Group 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 Abrams Bison Investments allocated the biggest weight to ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), around 5.91% of its 13F portfolio. King Street Capital is also relatively very bullish on the stock, earmarking 5.29 percent of its 13F equity portfolio to ZIM.
Seeing as ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) has experienced declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of fund managers that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Richard Driehaus’s Driehaus Capital dropped the largest position of the 750 funds monitored by Insider Monkey, valued at an estimated $16.8 million in stock. Chris Rokos’s fund, Rokos Capital Management, also dropped its stock, about $15.7 million worth. These transactions are important to note, as total hedge fund interest fell by 3 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks similar to ZIM Integrated Shipping Services Ltd. (NYSE:ZIM). We will take a look at Duck Creek Technologies, Inc. (NASDAQ:DCT), eXp World Holdings, Inc. (NASDAQ:EXPI), WESCO International, Inc. (NYSE:WCC), Everbridge, Inc. (NASDAQ:EVBG), Integra Lifesciences Holdings Corp (NASDAQ:IART), Halozyme Therapeutics, Inc. (NASDAQ:HALO), and SPS Commerce, Inc. (NASDAQ:SPSC). This group of stocks’ market caps are closest to ZIM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DCT | 17 | 234874 | -1 |
| EXPI | 22 | 107817 | 4 |
| WCC | 27 | 1174272 | 4 |
| EVBG | 23 | 1307891 | -3 |
| IART | 17 | 82913 | -2 |
| HALO | 23 | 179614 | 3 |
| SPSC | 17 | 178577 | -3 |
| Average | 20.9 | 466565 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.9 hedge funds with bullish positions and the average amount invested in these stocks was $467 million. That figure was $553 million in ZIM’s case. WESCO International, Inc. (NYSE:WCC) is the most popular stock in this table. On the other hand Duck Creek Technologies, Inc. (NASDAQ:DCT) is the least popular one with only 17 bullish hedge fund positions. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ZIM is 53.4. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on ZIM as the stock returned 22.4% since the end of Q3 (through 12/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Zim Integrated Shipping Services Ltd.
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Disclosure: None. This article was originally published at Insider Monkey.
