We at Insider Monkey have gone over 821 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, near the height of the coronavirus market crash. In this article, we look at what those funds think of trivago N.V. (NASDAQ:TRVG) based on that data.
Is trivago N.V. (NASDAQ:TRVG) the right pick for your portfolio? Money managers are taking a bearish view. The number of long hedge fund bets went down by 2 lately. Our calculations also showed that TRVG 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). TRVG was in 7 hedge funds’ portfolios at the end of the first quarter of 2020. There were 9 hedge funds in our database with TRVG positions at the end of the previous quarter.
Video: Watch our video about the top 5 most popular hedge fund stocks.
Today there are a lot of formulas stock traders put to use to evaluate publicly traded companies. Some of the most useful formulas are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the best picks of the elite fund managers can trounce the market by a very impressive margin (see the details here).
Brad Gerstner of Altimeter Capital
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 trades like this one. 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. With all of this in mind we’re going to analyze the recent hedge fund action encompassing trivago N.V. (NASDAQ:TRVG).
What have hedge funds been doing with trivago N.V. (NASDAQ:TRVG)?
Heading into the second quarter of 2020, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -22% from the fourth quarter of 2019. Below, you can check out the change in hedge fund sentiment towards TRVG over the last 18 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in trivago N.V. (NASDAQ:TRVG) was held by PAR Capital Management, which reported holding $30.7 million worth of stock at the end of September. It was followed by Altimeter Capital Management with a $7.7 million position. Other investors bullish on the company included Greenhouse Funds, Greenhouse Funds, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Greenhouse Funds allocated the biggest weight to trivago N.V. (NASDAQ:TRVG), around 1.73% of its 13F portfolio. PAR Capital Management is also relatively very bullish on the stock, earmarking 1.3 percent of its 13F equity portfolio to TRVG.
Since trivago N.V. (NASDAQ:TRVG) has faced declining sentiment from the smart money, we can see that there lies a certain “tier” of money managers that slashed their full holdings last quarter. It’s worth mentioning that Ari Zweiman’s 683 Capital Partners cut the largest stake of the 750 funds followed by Insider Monkey, comprising close to $5.7 million in stock, and Renaissance Technologies was right behind this move, as the fund cut about $0.2 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to trivago N.V. (NASDAQ:TRVG). These stocks are RAPT Therapeutics, Inc. (NASDAQ:RAPT), Knoll Inc (NYSE:KNL), Cohu, Inc. (NASDAQ:COHU), and Quanterix Corporation (NASDAQ:QTRX). This group of stocks’ market valuations match TRVG’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RAPT | 5 | 7977 | 5 |
| KNL | 11 | 18105 | -8 |
| COHU | 8 | 35028 | 2 |
| QTRX | 10 | 45063 | -2 |
| Average | 8.5 | 26543 | -0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $46 million in TRVG’s case. Knoll Inc (NYSE:KNL) is the most popular stock in this table. On the other hand RAPT Therapeutics, Inc. (NASDAQ:RAPT) is the least popular one with only 5 bullish hedge fund positions. trivago N.V. (NASDAQ:TRVG) is not the least popular stock in this group but hedge fund interest is still below average. 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 gained 13.9% in 2020 through June 10th and still beat the market by 14.2 percentage points. A small number of hedge funds were also right about betting on TRVG as the stock returned 62.3% during the second quarter and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
