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 873 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 June 30th. In this article we look at what those investors think of Cimpress plc (NASDAQ:CMPR).
Is CMPR a good stock to buy? Investors who are in the know were taking a bearish view. The number of long hedge fund bets were trimmed by 2 recently. Cimpress plc (NASDAQ:CMPR) was in 19 hedge funds’ portfolios at the end of June. The all time high for this statistic is 25. Our calculations also showed that CMPR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Kerr Neilson of Platinum Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, plant based food market is expected to explode 100-fold by 2050, so we are checking out this stock pitch. We go through lists like the 10 best growth stocks to buy 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s take a look at the fresh hedge fund action encompassing Cimpress plc (NASDAQ:CMPR).
Do Hedge Funds Think CMPR Is A Good Stock To Buy Now?
At the end of June, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of -10% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CMPR over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Spruce House Investment Management held the most valuable stake in Cimpress plc (NASDAQ:CMPR), which was worth $255.7 million at the end of the second quarter. On the second spot was Platinum Asset Management which amassed $17.4 million worth of shares. Bares Capital Management, Diamond Hill Capital, 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 Spruce House Investment Management allocated the biggest weight to Cimpress plc (NASDAQ:CMPR), around 6.1% of its 13F portfolio. Phoenician Capital is also relatively very bullish on the stock, earmarking 3.58 percent of its 13F equity portfolio to CMPR.
Due to the fact that Cimpress plc (NASDAQ:CMPR) has experienced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of money managers who sold off their full holdings by the end of the second quarter. It’s worth mentioning that Chuck Royce’s Royce & Associates cut the biggest stake of the 750 funds watched by Insider Monkey, comprising close to $2.4 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also sold off its stock, about $0.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 2 funds by the end of the second quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cimpress plc (NASDAQ:CMPR) but similarly valued. These stocks are The Cheesecake Factory Incorporated (NASDAQ:CAKE), LendingTree, Inc (NASDAQ:TREE), AMC Networks Inc (NASDAQ:AMCX), BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT), Group 1 Automotive, Inc. (NYSE:GPI), and Main Street Capital Corporation (NYSE:MAIN). All of these stocks’ market caps resemble CMPR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CAKE | 26 | 248072 | 8 |
| TREE | 30 | 346799 | 5 |
| AMCX | 19 | 252112 | -3 |
| BCRX | 25 | 510918 | 3 |
| RCKT | 19 | 539196 | -3 |
| GPI | 21 | 303598 | -5 |
| MAIN | 8 | 18777 | -2 |
| Average | 21.1 | 317067 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.1 hedge funds with bullish positions and the average amount invested in these stocks was $317 million. That figure was $345 million in CMPR’s case. LendingTree, Inc (NASDAQ:TREE) is the most popular stock in this table. On the other hand Main Street Capital Corporation (NYSE:MAIN) is the least popular one with only 8 bullish hedge fund positions. Cimpress plc (NASDAQ:CMPR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CMPR is 50.8. 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 negative signal and 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 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately CMPR wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CMPR investors were disappointed as the stock returned -18.3% since the end of June (through 10/22) 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 in 2021.
Follow Cimpress Plc (NASDAQ:CMPR)
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Disclosure: None. This article was originally published at Insider Monkey.
