A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Formula One Group (NASDAQ:FWONK).
Is FWONK a good stock to buy? Formula One Group (NASDAQ:FWONK) has experienced a decrease in enthusiasm from smart money of late. Formula One Group (NASDAQ:FWONK) was in 40 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 54. There were 41 hedge funds in our database with FWONK positions at the end of the second quarter. Our calculations also showed that FWONK 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 take a look at the fresh hedge fund action regarding Formula One Group (NASDAQ:FWONK).
Ian Wace of Marshall Wace
Do Hedge Funds Think FWONK Is A Good Stock To Buy Now?
At the end of September, a total of 40 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -2% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in FWONK over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Formula One Group (NASDAQ:FWONK) was held by Sculptor Capital, which reported holding $441 million worth of stock at the end of September. It was followed by Ashe Capital with a $300.8 million position. Other investors bullish on the company included Eminence Capital, Kontiki Capital, and Tremblant Capital. In terms of the portfolio weights assigned to each position Fosse Capital Partners allocated the biggest weight to Formula One Group (NASDAQ:FWONK), around 22.96% of its 13F portfolio. Ashe Capital is also relatively very bullish on the stock, setting aside 18.09 percent of its 13F equity portfolio to FWONK.
Because Formula One Group (NASDAQ:FWONK) has experienced a decline in interest from hedge fund managers, it’s safe to say that there is a sect of hedge funds that decided to sell off their full holdings by the end of the third quarter. Intriguingly, Matthew Stadelman’s Diamond Hill Capital dropped the largest investment of the “upper crust” of funds followed by Insider Monkey, comprising close to $46.7 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dumped about $11.8 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 1 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Formula One Group (NASDAQ:FWONK) but similarly valued. These stocks are PulteGroup, Inc. (NYSE:PHM), Graco Inc. (NYSE:GGG), Allegion plc (NYSE:ALLE), Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Qiagen NV (NYSE:QGEN), Bruker Corporation (NASDAQ:BRKR), and Godaddy Inc (NYSE:GDDY). This group of stocks’ market values resemble FWONK’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PHM | 35 | 771756 | 1 |
| GGG | 32 | 258259 | 8 |
| ALLE | 32 | 1002211 | -5 |
| KOF | 6 | 460706 | -3 |
| QGEN | 21 | 599491 | -1 |
| BRKR | 31 | 552162 | 0 |
| GDDY | 37 | 2299629 | -2 |
| Average | 27.7 | 849173 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.7 hedge funds with bullish positions and the average amount invested in these stocks was $849 million. That figure was $1901 million in FWONK’s case. Godaddy Inc (NYSE:GDDY) is the most popular stock in this table. On the other hand Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Formula One Group (NASDAQ:FWONK) is more popular among hedge funds. Our overall hedge fund sentiment score for FWONK is 76.2. 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 returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on FWONK as the stock returned 18.5% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
