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. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. What do these smart investors think about JOYY Inc. (NASDAQ:YY)?
Is JOYY Inc. (NASDAQ:YY) ready to rally soon? Prominent investors were becoming less hopeful. The number of bullish hedge fund positions were trimmed by 3 recently. JOYY Inc. (NASDAQ:YY) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 31. Our calculations also showed that YY isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 24 hedge funds in our database with YY holdings at the end of June.
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 we’re going to take a look at the latest hedge fund action encompassing JOYY Inc. (NASDAQ:YY).
James Dinan of York Capital Management
Do Hedge Funds Think YY Is A Good Stock To Buy Now?
At the end of September, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards YY over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Yiheng Capital was the largest shareholder of JOYY Inc. (NASDAQ:YY), with a stake worth $59 million reported as of the end of September. Trailing Yiheng Capital was Southeastern Asset Management, which amassed a stake valued at $46 million. York Capital Management, Discovery Capital Management, and Maso Capital 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 Maso Capital allocated the biggest weight to JOYY Inc. (NASDAQ:YY), around 7.22% of its 13F portfolio. Yiheng Capital is also relatively very bullish on the stock, dishing out 2.91 percent of its 13F equity portfolio to YY.
Since JOYY Inc. (NASDAQ:YY) has faced falling interest from the smart money, it’s safe to say that there is a sect of hedge funds who were dropping their entire stakes by the end of the third quarter. It’s worth mentioning that Renaissance Technologies sold off the largest investment of all the hedgies monitored by Insider Monkey, worth close to $44.2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $26.3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as JOYY Inc. (NASDAQ:YY) but similarly valued. We will take a look at World Wrestling Entertainment, Inc. (NYSE:WWE), Nikola Corporation (NASDAQ:NKLA), Stitch Fix, Inc. (NASDAQ:SFIX), Carter’s, Inc. (NYSE:CRI), Insperity Inc (NYSE:NSP), Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE), and Companhia Energética de Minas Gerais (NYSE:CIG). This group of stocks’ market values are closest to YY’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WWE | 25 | 223948 | -8 |
| NKLA | 15 | 213849 | 3 |
| SFIX | 30 | 600679 | -5 |
| CRI | 24 | 309046 | 3 |
| NSP | 18 | 211562 | -2 |
| CERE | 13 | 365384 | -6 |
| CIG | 11 | 66465 | -4 |
| Average | 19.4 | 284419 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.4 hedge funds with bullish positions and the average amount invested in these stocks was $284 million. That figure was $250 million in YY’s case. Stitch Fix, Inc. (NASDAQ:SFIX) is the most popular stock in this table. On the other hand Companhia Energética de Minas Gerais (NYSE:CIG) is the least popular one with only 11 bullish hedge fund positions. JOYY Inc. (NASDAQ:YY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for YY is 48.6. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately YY wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on YY were disappointed as the stock returned -16.3% since the end of September (through 12/31) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
