We at Insider Monkey have gone over 887 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 December 31st. In this article, we look at what those funds think of PVH Corp (NYSE:PVH) based on that data.
Is PVH stock a buy or sell? Money managers were taking an optimistic view. The number of long hedge fund bets moved up by 9 in recent months. PVH Corp (NYSE:PVH) was in 37 hedge funds’ portfolios at the end of the fourth quarter of 2020. 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 Q4 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 124 percentage points since March 2017 (see the details here).
Andreas Halvorsen of Viking Global
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 10 best battery stocks to buy to identify the next stock with 10x upside potential. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Keeping this in mind we’re going to take a glance at the latest hedge fund action surrounding PVH Corp (NYSE:PVH).
Do Hedge Funds Think PVH Is A Good Stock To Buy Now?
At fourth quarter’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 32% from the previous quarter. On the other hand, there were a total of 29 hedge funds with a bullish position in PVH a year ago. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
More specifically, Pzena Investment Management was the largest shareholder of PVH Corp (NYSE:PVH), with a stake worth $692.5 million reported as of the end of December. Trailing Pzena Investment Management was Scopus Asset Management, which amassed a stake valued at $108 million. Viking Global, Candlestick Capital Management, and Point72 Asset Management 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 Stormborn Capital Management allocated the biggest weight to PVH Corp (NYSE:PVH), around 3.67% of its 13F portfolio. Pzena Investment Management is also relatively very bullish on the stock, earmarking 3.27 percent of its 13F equity portfolio to PVH.
As one would reasonably expect, key money managers have been driving this bullishness. Point72 Asset Management, managed by Steve Cohen, assembled the most valuable position in PVH Corp (NYSE:PVH). Point72 Asset Management had $42.5 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also initiated a $22.4 million position during the quarter. The other funds with brand new PVH positions are Dmitry Balyasny’s Balyasny Asset Management, Elise Di Vincenzo Crumbine’s Stormborn Capital Management, and Anthony Joseph Vaccarino’s North Fourth Asset Management.
Let’s check out hedge fund activity in other stocks similar to PVH Corp (NYSE:PVH). We will take a look at Post Holdings Inc (NYSE:POST), ITT Inc. (NYSE:ITT), Futu Holdings Limited (NASDAQ:FUTU), Kilroy Realty Corp (NYSE:KRC), Casey’s General Stores, Inc. (NASDAQ:CASY), Ballard Power Systems Inc. (NASDAQ:BLDP), and ANGI Homeservices Inc (NASDAQ:ANGI). This group of stocks’ market caps are closest to PVH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| POST | 27 | 1536661 | -3 |
| ITT | 28 | 406807 | -2 |
| FUTU | 17 | 334170 | 2 |
| KRC | 25 | 251572 | 6 |
| CASY | 23 | 120810 | 2 |
| BLDP | 20 | 200727 | -1 |
| ANGI | 31 | 319845 | -11 |
| Average | 24.4 | 452942 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.4 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $1132 million in PVH’s case. ANGI Homeservices Inc (NASDAQ:ANGI) is the most popular stock in this table. On the other hand Futu Holdings Limited (NASDAQ:FUTU) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks PVH Corp (NYSE:PVH) is more popular among hedge funds. Our overall hedge fund sentiment score for PVH is 85.2. 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 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7.9% in 2021 through April 1st and still managed to beat the market by 0.4 percentage points. Hedge funds were also right about betting on PVH, though not to the same extent, as the stock returned 7.6% since the end of December (through April 1st) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
