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 Huntsman Corporation (NYSE:HUN) based on those filings.
Huntsman Corporation (NYSE:HUN) investors should pay attention to a decrease in activity from the world’s largest hedge funds in recent months. Huntsman Corporation (NYSE:HUN) was in 26 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 47. Our calculations also showed that HUN 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 check out the recent hedge fund action regarding Huntsman Corporation (NYSE:HUN).
Jeffrey Smith of Starboard Value LP
Do Hedge Funds Think HUN Is A Good Stock To Buy Now?
At Q3’s end, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from the previous quarter. On the other hand, there were a total of 24 hedge funds with a bullish position in HUN a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jeffrey Smith’s Starboard Value LP has the largest position in Huntsman Corporation (NYSE:HUN), worth close to $343.2 million, amounting to 6.3% of its total 13F portfolio. On Starboard Value LP’s heels is Yacktman Asset Management, managed by Donald Yacktman, which holds a $198 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Chuck Royce’s Royce & Associates, Brandon Haley’s Holocene Advisors and Alexander Roepers’s Atlantic Investment Management. In terms of the portfolio weights assigned to each position Atlantic Investment Management allocated the biggest weight to Huntsman Corporation (NYSE:HUN), around 18.61% of its 13F portfolio. Appian Way Asset Management is also relatively very bullish on the stock, setting aside 11.97 percent of its 13F equity portfolio to HUN.
Due to the fact that Huntsman Corporation (NYSE:HUN) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedge funds who sold off their full holdings last quarter. It’s worth mentioning that John Overdeck and David Siegel’s Two Sigma Advisors dropped the biggest stake of the 750 funds followed by Insider Monkey, comprising close to $13 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $8.4 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 1 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Huntsman Corporation (NYSE:HUN) but similarly valued. We will take a look at Sprout Social, Inc. (NASDAQ:SPT), RenaissanceRe Holdings Ltd. (NYSE:RNR), Brixmor Property Group Inc (NYSE:BRX), Skechers USA Inc (NYSE:SKX), Planet Fitness Inc (NYSE:PLNT), Change Healthcare Inc. (NASDAQ:CHNG), and Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR). This group of stocks’ market caps resemble HUN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SPT | 29 | 595106 | 4 |
| RNR | 31 | 473877 | 0 |
| BRX | 24 | 246523 | 3 |
| SKX | 35 | 744486 | 0 |
| PLNT | 40 | 1515923 | 6 |
| CHNG | 50 | 1557603 | -1 |
| ARWR | 24 | 150783 | -6 |
| Average | 33.3 | 754900 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 33.3 hedge funds with bullish positions and the average amount invested in these stocks was $755 million. That figure was $985 million in HUN’s case. Change Healthcare Inc. (NASDAQ:CHNG) is the most popular stock in this table. On the other hand Brixmor Property Group Inc (NYSE:BRX) is the least popular one with only 24 bullish hedge fund positions. Huntsman Corporation (NYSE:HUN) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for HUN is 24.4. 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. 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 still beat the market by 5.1 percentage points. A small number of hedge funds were also right about betting on HUN as the stock returned 10% since the end of the third quarter (through 12/9) and outperformed the market by an even larger margin.
Follow Huntsman Corp (NYSE:HUN)
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Disclosure: None. This article was originally published at Insider Monkey.
