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 Performance Food Group Company (NYSE:PFGC) based on that data and determine whether they were really smart about the stock.
Performance Food Group Company (NYSE:PFGC) was in 36 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 41. PFGC shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. There were 41 hedge funds in our database with PFGC positions at the end of the second quarter. Our calculations also showed that PFGC isn’t among the 30 most popular stocks among hedge funds (click for Q3 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 let’s review the key hedge fund action regarding Performance Food Group Company (NYSE:PFGC).
Do Hedge Funds Think PFGC Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 36 of the hedge funds tracked by Insider Monkey were long this stock, a change of -12% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards PFGC over the last 25 quarters. 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 Performance Food Group Company (NYSE:PFGC) was held by Citadel Investment Group, which reported holding $139.4 million worth of stock at the end of September. It was followed by Eminence Capital with a $117.9 million position. Other investors bullish on the company included Balyasny Asset Management, Point72 Asset Management, and Candlestick Capital Management. In terms of the portfolio weights assigned to each position Kehrs Ridge Capital allocated the biggest weight to Performance Food Group Company (NYSE:PFGC), around 7.13% of its 13F portfolio. MIK Capital is also relatively very bullish on the stock, earmarking 5.24 percent of its 13F equity portfolio to PFGC.
Due to the fact that Performance Food Group Company (NYSE:PFGC) has witnessed declining sentiment from the aggregate hedge fund industry, we can see that there is a sect of funds that elected to cut their positions entirely in the third quarter. Interestingly, D. E. Shaw’s D E Shaw sold off the largest stake of all the hedgies tracked by Insider Monkey, totaling close to $26.4 million in stock. Renaissance Technologies, also dumped its stock, about $20.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 5 funds in the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Performance Food Group Company (NYSE:PFGC) but similarly valued. We will take a look at Affiliated Managers Group, Inc. (NYSE:AMG), Duolingo Inc. (NASDAQ:DUOL), ANGI Homeservices Inc (NASDAQ:ANGI), Emcor Group Inc (NYSE:EME), Acuity Brands, Inc. (NYSE:AYI), Freshpet Inc (NASDAQ:FRPT), and BOK Financial Corporation (NASDAQ:BOKF). All of these stocks’ market caps resemble PFGC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AMG | 30 | 753848 | 0 |
| DUOL | 12 | 183935 | 12 |
| ANGI | 26 | 256863 | 0 |
| EME | 19 | 136492 | -2 |
| AYI | 26 | 476748 | -7 |
| FRPT | 24 | 348415 | -4 |
| BOKF | 15 | 376008 | 2 |
| Average | 21.7 | 361758 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.7 hedge funds with bullish positions and the average amount invested in these stocks was $362 million. That figure was $747 million in PFGC’s case. Affiliated Managers Group, Inc. (NYSE:AMG) is the most popular stock in this table. On the other hand Duolingo Inc. (NASDAQ:DUOL) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Performance Food Group Company (NYSE:PFGC) is more popular among hedge funds. Our overall hedge fund sentiment score for PFGC is 76.3. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately, PFGC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PFGC were disappointed as the stock returned -9.2% since the end of the third quarter (through 1/31) 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 all of these stocks already outperformed the market since 2019.
Follow Performance Food Group Co (NYSE:PFGC)
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Disclosure: None. This article was originally published at Insider Monkey.
