The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Bally’s Corporation (NYSE:BALY).
Bally’s Corporation (NYSE:BALY) was in 28 hedge funds’ portfolios at the end of September. The all time high for this statistic is 30. BALY has experienced a decrease in hedge fund sentiment recently. There were 30 hedge funds in our database with BALY positions at the end of the second quarter. Our calculations also showed that BALY 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 take a look at the recent hedge fund action regarding Bally’s Corporation (NYSE:BALY).
Paul Reeder of PAR Capital Management
Do Hedge Funds Think BALY Is A Good Stock To Buy Now?
At the end of September, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of -7% from the previous quarter. By comparison, 17 hedge funds held shares or bullish call options in BALY a year ago. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Paul Reeder and Edward Shapiro’s PAR Capital Management has the largest position in Bally’s Corporation (NYSE:BALY), worth close to $103.6 million, accounting for 2.5% of its total 13F portfolio. The second most bullish fund manager is GLG Partners, managed by Noam Gottesman, which holds a $58.4 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish include John Paulson’s Paulson & Co, Parag Vora’s HG Vora Capital Management and Dmitry Balyasny’s Balyasny Asset Management. In terms of the portfolio weights assigned to each position Potrero Capital Research allocated the biggest weight to Bally’s Corporation (NYSE:BALY), around 4.57% of its 13F portfolio. Solus Alternative Asset Management is also relatively very bullish on the stock, designating 4.09 percent of its 13F equity portfolio to BALY.
Since Bally’s Corporation (NYSE:BALY) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of money managers who were dropping their full holdings last quarter. It’s worth mentioning that John Khoury’s Long Pond Capital dropped the largest stake of the “upper crust” of funds followed by Insider Monkey, worth an estimated $115.8 million in stock. Joseph Samuels’s fund, Islet Management, also said goodbye to its stock, about $16.2 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds last quarter.
Let’s check out hedge fund activity in other stocks similar to Bally’s Corporation (NYSE:BALY). We will take a look at ATRenew Inc. (NYSE:RERE), Kenon Holdings Ltd. (NYSE:KEN), Bloomin’ Brands Inc (NASDAQ:BLMN), WesBanco, Inc. (NASDAQ:WSBC), Abercrombie & Fitch Co. (NYSE:ANF), Patria Investments Limited (NASDAQ:PAX), and TreeHouse Foods Inc. (NYSE:THS). This group of stocks’ market values match BALY’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RERE | 6 | 64527 | -2 |
| KEN | 2 | 962 | 1 |
| BLMN | 37 | 623522 | 1 |
| WSBC | 13 | 27002 | 1 |
| ANF | 31 | 415643 | -1 |
| PAX | 15 | 162601 | 0 |
| THS | 20 | 274337 | -2 |
| Average | 17.7 | 224085 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17.7 hedge funds with bullish positions and the average amount invested in these stocks was $224 million. That figure was $422 million in BALY’s case. Bloomin’ Brands Inc (NASDAQ:BLMN) is the most popular stock in this table. On the other hand Kenon Holdings Ltd. (NYSE:KEN) is the least popular one with only 2 bullish hedge fund positions. Bally’s Corporation (NYSE:BALY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BALY is 68.1. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately BALY wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BALY were disappointed as the stock returned -22.5% since the end of September (through 12/9) 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.
Follow Bally's Corp (NYSE:BALY)
Follow Bally's Corp (NYSE:BALY)
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Disclosure: None. This article was originally published at Insider Monkey.
