We at Insider Monkey have gone over 866 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article, we look at what those funds think of PVH Corp (NYSE:PVH) based on that data.
Is PVH a good stock to buy? Investors who are in the know were taking a bearish view. The number of bullish hedge fund bets decreased by 3 in recent months. PVH Corp (NYSE:PVH) was in 34 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 44. Our calculations also showed that PVH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Ole Andreas Halvorsen of Viking Global
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Do Hedge Funds Think PVH Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from the previous quarter. On the other hand, there were a total of 18 hedge funds with a bullish position in PVH a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in PVH Corp (NYSE:PVH) was held by Pzena Investment Management, which reported holding $755.7 million worth of stock at the end of December. It was followed by Viking Global with a $98.6 million position. Other investors bullish on the company included Scopus Asset Management, Point72 Asset Management, and Melvin Capital Management. In terms of the portfolio weights assigned to each position Pzena Investment Management allocated the biggest weight to PVH Corp (NYSE:PVH), around 3.07% of its 13F portfolio. Stormborn Capital Management is also relatively very bullish on the stock, designating 3.05 percent of its 13F equity portfolio to PVH.
Due to the fact that PVH Corp (NYSE:PVH) has experienced declining sentiment from the smart money, we can see that there lies a certain “tier” of hedge funds that slashed their positions entirely in the first quarter. At the top of the heap, Robert Pohly’s Samlyn Capital cut the largest investment of all the hedgies followed by Insider Monkey, worth an estimated $22.4 million in stock, and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital was right behind this move, as the fund said goodbye to about $16 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds in the first quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as PVH Corp (NYSE:PVH) but similarly valued. These stocks are InVitae Corporation (NYSE:NVTA), Cabot Oil & Gas Corporation (NYSE:COG), JOYY Inc. (NASDAQ:YY), Manhattan Associates, Inc. (NASDAQ:MANH), Thor Industries, Inc. (NYSE:THO), United Therapeutics Corporation (NASDAQ:UTHR), and ICL Group Ltd. (NYSE:ICL). All of these stocks’ market caps match PVH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NVTA | 34 | 2759303 | -1 |
| COG | 20 | 135171 | 1 |
| YY | 20 | 316827 | 0 |
| MANH | 28 | 303302 | 5 |
| THO | 21 | 183769 | -3 |
| UTHR | 42 | 2116890 | 6 |
| ICL | 4 | 43595 | -1 |
| Average | 24.1 | 836980 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.1 hedge funds with bullish positions and the average amount invested in these stocks was $837 million. That figure was $1235 million in PVH’s case. United Therapeutics Corporation (NASDAQ:UTHR) is the most popular stock in this table. On the other hand ICL Group Ltd. (NYSE:ICL) is the least popular one with only 4 bullish hedge fund positions. PVH Corp (NYSE:PVH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PVH is 64.7. 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 19.3% in 2021 through June 25th and beat the market again by 4.8 percentage points. Unfortunately PVH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PVH were disappointed as the stock returned 4.9% since the end of March (through 6/25) 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.
