A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Katapult Holdings Inc. (NASDAQ:KPLT).
Katapult Holdings Inc. (NASDAQ:KPLT) has seen a decrease in hedge fund sentiment of late. Katapult Holdings Inc. (NASDAQ:KPLT) was in 25 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 33. Our calculations also showed that KPLT 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. With all of this in mind we’re going to take a peek at the new hedge fund action regarding Katapult Holdings Inc. (NASDAQ:KPLT).
Paul Glazer of Glazer Capital
Do Hedge Funds Think KPLT Is A Good Stock To Buy Now?
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of -24% from the second quarter of 2021. By comparison, 0 hedge funds held shares or bullish call options in KPLT a year ago. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
Among these funds, Tiger Global Management LLC held the most valuable stake in Katapult Holdings Inc. (NASDAQ:KPLT), which was worth $27.2 million at the end of the third quarter. On the second spot was Iridian Asset Management which amassed $15.1 million worth of shares. Anchorage Advisors, Light Street Capital, and D E Shaw 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 Light Street Capital allocated the biggest weight to Katapult Holdings Inc. (NASDAQ:KPLT), around 0.46% of its 13F portfolio. Iridian Asset Management is also relatively very bullish on the stock, earmarking 0.46 percent of its 13F equity portfolio to KPLT.
Seeing as Katapult Holdings Inc. (NASDAQ:KPLT) has experienced falling interest from hedge fund managers, it’s safe to say that there exists a select few funds that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Aaron Cowen’s Suvretta Capital Management dumped the biggest investment of all the hedgies monitored by Insider Monkey, worth about $32.5 million in stock, and Peter S. Park’s Park West Asset Management was right behind this move, as the fund sold off about $25.3 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 8 funds in the third quarter.
Let’s go over hedge fund activity in other stocks similar to Katapult Holdings Inc. (NASDAQ:KPLT). We will take a look at Resources Connection, Inc. (NASDAQ:RGP), Diana Shipping Inc. (NYSE:DSX), Epizyme Inc (NASDAQ:EPZM), Qiwi PLC (NASDAQ:QIWI), iClick Interactive Asia Group Limited (NASDAQ:ICLK), SunCoke Energy, Inc (NYSE:SXC), and Audacy, Inc. (NYSE:AUD). This group of stocks’ market valuations are closest to KPLT’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RGP | 11 | 34788 | -1 |
| DSX | 14 | 64727 | -1 |
| EPZM | 10 | 114170 | -5 |
| QIWI | 6 | 14100 | 0 |
| ICLK | 7 | 5771 | 2 |
| SXC | 19 | 69289 | 0 |
| AUD | 14 | 80637 | -3 |
| Average | 11.6 | 54783 | -1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.6 hedge funds with bullish positions and the average amount invested in these stocks was $55 million. That figure was $93 million in KPLT’s case. SunCoke Energy, Inc (NYSE:SXC) is the most popular stock in this table. On the other hand Qiwi PLC (NASDAQ:QIWI) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Katapult Holdings Inc. (NASDAQ:KPLT) is more popular among hedge funds. Our overall hedge fund sentiment score for KPLT is 69.7. 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. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately KPLT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on KPLT were disappointed as the stock returned -31.7% since the end of the third quarter (through 12/9) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
