In this article we are going to use hedge fund sentiment as a tool and determine whether PJT Partners Inc (NYSE:PJT) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
Is PJT a good stock to buy? PJT Partners Inc (NYSE:PJT) has experienced an increase in activity from the world’s largest hedge funds of late. PJT Partners Inc (NYSE:PJT) was in 21 hedge funds’ portfolios at the end of September. The all time high for this statistic is 22. There were 19 hedge funds in our database with PJT holdings at the end of June. Our calculations also showed that PJT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Sander Gerber of Hudson Bay Capital
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. With all of this in mind let’s take a look at the latest hedge fund action regarding PJT Partners Inc (NYSE:PJT).
Do Hedge Funds Think PJT Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards PJT 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.
According to Insider Monkey’s hedge fund database, Millennium Management, managed by Israel Englander, holds the most valuable position in PJT Partners Inc (NYSE:PJT). Millennium Management has a $34.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Tudor Investment Corp, managed by Paul Tudor Jones, which holds a $14.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers that are bullish encompass Phill Gross and Robert Atchinson’s Adage Capital Management, Mario Gabelli’s GAMCO Investors and Sander Gerber’s Hudson Bay Capital Management. In terms of the portfolio weights assigned to each position Prospector Partners allocated the biggest weight to PJT Partners Inc (NYSE:PJT), around 0.66% of its 13F portfolio. Quantinno Capital is also relatively very bullish on the stock, designating 0.37 percent of its 13F equity portfolio to PJT.
With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), created the biggest position in PJT Partners Inc (NYSE:PJT). Schonfeld Strategic Advisors had $3.9 million invested in the company at the end of the quarter. Peter Algert’s Algert Global also made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners and John A. Levin’s Levin Capital Strategies.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as PJT Partners Inc (NYSE:PJT) but similarly valued. These stocks are Tower Semiconductor Ltd. (NASDAQ:TSEM), BancorpSouth Bank (NYSE:BXS), Taylor Morrison Home Corp (NYSE:TMHC), Dana Incorporated (NYSE:DAN), Cathay General Bancorp (NASDAQ:CATY), EverCommerce Inc. (NASDAQ:EVCM), and JFrog Ltd. (NASDAQ:FROG). This group of stocks’ market values match PJT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TSEM | 16 | 355095 | 1 |
| BXS | 15 | 109221 | -3 |
| TMHC | 23 | 233075 | 0 |
| DAN | 20 | 553106 | -4 |
| CATY | 13 | 109746 | 0 |
| EVCM | 12 | 1217955 | 12 |
| FROG | 20 | 278019 | 8 |
| Average | 17 | 408031 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $408 million. That figure was $109 million in PJT’s case. Taylor Morrison Home Corp (NYSE:TMHC) is the most popular stock in this table. On the other hand EverCommerce Inc. (NASDAQ:EVCM) is the least popular one with only 12 bullish hedge fund positions. PJT Partners Inc (NYSE:PJT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PJT is 76.5. 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 PJT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PJT were disappointed as the stock returned -2.6% 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.
Follow Pjt Partners Inc. (NYSE:PJT)
Follow Pjt Partners Inc. (NYSE:PJT)
Suggested Articles:
- 10 Best Dividend Stocks Under $20
- 10 Best High Yield Dividend Stocks Under $50
- 10 Best High Dividend Stocks to Buy
Disclosure: None. This article was originally published at Insider Monkey.
