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 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. What do these smart investors think about Lazydays Holdings, Inc. (NASDAQ:LAZY)?
Lazydays Holdings, Inc. (NASDAQ:LAZY) shares haven’t seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds’ portfolios at the end of the first quarter of 2020. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Zion Oil & Gas Inc (NASDAQ:ZN), Volt Information Sciences, Inc. (NYSE:VOLT), and Bionano Genomics, Inc. (NASDAQ:BNGO) to gather more data points. Our calculations also showed that LAZY isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 101% since March 2017 and outperformed the S&P 500 ETFs by more than 58 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Chuck Royce of Royce & Associates
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we’re going to go over the new hedge fund action encompassing Lazydays Holdings, Inc. (NASDAQ:LAZY).
What have hedge funds been doing with Lazydays Holdings, Inc. (NASDAQ:LAZY)?
Heading into the second quarter of 2020, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. By comparison, 6 hedge funds held shares or bullish call options in LAZY a year ago. 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, Park West Asset Management was the largest shareholder of Lazydays Holdings, Inc. (NASDAQ:LAZY), with a stake worth $1.6 million reported as of the end of September. Trailing Park West Asset Management was Coliseum Capital, which amassed a stake valued at $0.9 million. Nokomis Capital, Millennium Management, and Royce & Associates 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 Nokomis Capital allocated the biggest weight to Lazydays Holdings, Inc. (NASDAQ:LAZY), around 0.45% of its 13F portfolio. Coliseum Capital is also relatively very bullish on the stock, setting aside 0.25 percent of its 13F equity portfolio to LAZY.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the first quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Lazydays Holdings, Inc. (NASDAQ:LAZY) but similarly valued. We will take a look at Zion Oil & Gas Inc (NASDAQ:ZN), Volt Information Sciences, Inc. (NYSE:VOLT), Bionano Genomics, Inc. (NASDAQ:BNGO), and NovaBay Pharmaceuticals, Inc. (NYSE:NBY). This group of stocks’ market valuations are similar to LAZY’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ZN | 2 | 553 | -1 |
| VOLT | 4 | 1236 | -1 |
| BNGO | 1 | 529 | 0 |
| NBY | 1 | 45 | 0 |
| Average | 2 | 591 | -0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $4 million in LAZY’s case. Volt Information Sciences, Inc. (NYSE:VOLT) is the most popular stock in this table. On the other hand Bionano Genomics, Inc. (NASDAQ:BNGO) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Lazydays Holdings, Inc. (NASDAQ:LAZY) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks returned 8.3% in 2020 through the end of May but still managed to beat the market by 13.2 percentage points. Hedge funds were also right about betting on LAZY as the stock returned 195.1% so far in Q2 (through the end of May) 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.
