The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 867 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Evergy, Inc. (NYSE:EVRG) based on those filings.
Evergy, Inc. (NYSE:EVRG) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic is 40. EVRG investors should pay attention to an increase in support from the world’s most elite money managers of late. There were 21 hedge funds in our database with EVRG holdings at the end of June. Our calculations also showed that EVRG 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. Now let’s view the latest hedge fund action surrounding Evergy, Inc. (NYSE:EVRG).
Paul Singer of Elliott Management
Do Hedge Funds Think EVRG Is A Good Stock To Buy Now?
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 19% from the previous quarter. The graph below displays the number of hedge funds with bullish position in EVRG over the last 25 quarters. 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, Elliott Investment Management held the most valuable stake in Evergy, Inc. (NYSE:EVRG), which was worth $655.7 million at the end of the third quarter. On the second spot was Citadel Investment Group which amassed $44.8 million worth of shares. Millennium Management, GAMCO Investors, 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 Coann Capital allocated the biggest weight to Evergy, Inc. (NYSE:EVRG), around 6.99% of its 13F portfolio. Elliott Investment Management is also relatively very bullish on the stock, earmarking 4.7 percent of its 13F equity portfolio to EVRG.
As aggregate interest increased, some big names were breaking ground themselves. Senator Investment Group, managed by Doug Silverman and Alexander Klabin, created the biggest position in Evergy, Inc. (NYSE:EVRG). Senator Investment Group had $11.2 million invested in the company at the end of the quarter. Steve Pattyn’s Yaupon Capital also made a $2.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Ran Pang’s Quantamental Technologies, Greg Eisner’s Engineers Gate Manager, and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Evergy, Inc. (NYSE:EVRG) but similarly valued. These stocks are Vedanta Ltd (NYSE:VEDL), SentinelOne, Inc. (NYSE:S), Cognex Corporation (NASDAQ:CGNX), BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), PTC Inc (NASDAQ:PTC), Cardinal Health, Inc. (NYSE:CAH), and Clarivate Plc (NYSE:CLVT). All of these stocks’ market caps are similar to EVRG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VEDL | 8 | 25575 | -2 |
| S | 35 | 2234141 | -32 |
| CGNX | 34 | 428413 | -1 |
| BMRN | 44 | 1441300 | 0 |
| PTC | 37 | 1819643 | 6 |
| CAH | 36 | 664971 | -4 |
| CLVT | 32 | 4723546 | -9 |
| Average | 32.3 | 1619656 | -6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.3 hedge funds with bullish positions and the average amount invested in these stocks was $1620 million. That figure was $908 million in EVRG’s case. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is the most popular stock in this table. On the other hand Vedanta Ltd (NYSE:VEDL) is the least popular one with only 8 bullish hedge fund positions. Evergy, Inc. (NYSE:EVRG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for EVRG is 51.4. 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. 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 31.1% in 2021 through December 9th and surpassed the market again by 5.1 percentage points. Unfortunately EVRG wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); EVRG investors were disappointed as the stock returned 7.8% 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 most of these stocks already outperformed the market in 2021.
Follow Evergy Inc. (NYSE:EVRG)
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Disclosure: None. This article was originally published at Insider Monkey.
