The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Vimeo Inc. (NASDAQ:VMEO).
Is Vimeo Inc. (NASDAQ:VMEO) a superb investment today? Prominent investors were taking an optimistic view. The number of long hedge fund positions advanced by 36 lately. Vimeo Inc. (NASDAQ:VMEO) was in 36 hedge funds’ portfolios at the end of September. Our calculations also showed that VMEO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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. Keeping this in mind let’s take a look at the recent hedge fund action encompassing Vimeo Inc. (NASDAQ:VMEO).
Do Hedge Funds Think VMEO Is A Good Stock To Buy Now?
At the end of September, a total of 36 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 36 from the second quarter of 2021. On the other hand, there were a total of 0 hedge funds with a bullish position in VMEO a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Joshua Kushner’s Thrive Capital has the most valuable position in Vimeo Inc. (NASDAQ:VMEO) , worth close to $171.9 million, corresponding to 9.3% of its total 13F portfolio. Sitting at the No. 2 spot is ShawSpring Partners, led by Dennis Hong, holding a $86.7 million position; the fund has 9% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism consist of Gabriel Plotkin’s Melvin Capital Management, Joshua Nash’s Ulysses Management and Robert M. P. Luciano’s VGI Partners. In terms of the portfolio weights assigned to each position Thrive Capital allocated the biggest weight to Vimeo Inc. (NASDAQ:VMEO) , around 9.32% of its 13F portfolio. ShawSpring Partners is also relatively very bullish on the stock, dishing out 9.05 percent of its 13F equity portfolio to VMEO.
As industrywide interest jumped, key money managers have been driving this bullishness. Southpoint Capital Advisors, managed by John Smith Clark, established the most outsized position in Vimeo Inc. (NASDAQ:VMEO) . Southpoint Capital Advisors had $8.8 million invested in the company at the end of the quarter. Frank Fu’s CaaS Capital also initiated a $7.9 million position during the quarter. The other funds with brand new VMEO positions are Peter Algert’s Algert Global and Peter Muller’s PDT Partners.
Let’s now review hedge fund activity in other stocks similar to Vimeo Inc. (NASDAQ:VMEO) . We will take a look at Diversey Holdings, Ltd. (NASDAQ:DSEY), The Wendy’s Company (NASDAQ:WEN), C3.ai, Inc. (NYSE:AI), Sterling Bancorp (NYSE:STL), The Chemours Company (NYSE:CC), National Fuel Gas Company (NYSE:NFG), and Adaptive Biotechnologies Corporation (NASDAQ:ADPT). This group of stocks’ market valuations are closest to VMEO’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DSEY | 8 | 140678 | -4 |
| WEN | 33 | 949810 | 3 |
| AI | 24 | 199056 | -5 |
| STL | 17 | 252247 | 1 |
| CC | 38 | 548945 | 14 |
| NFG | 19 | 152900 | 7 |
| ADPT | 25 | 1775850 | -2 |
| Average | 23.4 | 574212 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.4 hedge funds with bullish positions and the average amount invested in these stocks was $574 million. That figure was $465 million in VMEO’s case. The Chemours Company (NYSE:CC) is the most popular stock in this table. On the other hand Diversey Holdings, Ltd. (NASDAQ:DSEY) is the least popular one with only 8 bullish hedge fund positions. Vimeo Inc. (NASDAQ:VMEO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for VMEO is 84.7. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately VMEO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on VMEO were disappointed as the stock returned -34.3% since the end of September (through 11/30) 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.
