The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of MGM Growth Properties LLC (NYSE:MGP).
MGM Growth Properties LLC (NYSE:MGP) has experienced a decrease in enthusiasm from smart money recently. MGM Growth Properties LLC (NYSE:MGP) was in 27 hedge funds’ portfolios at the end of September. The all time high for this statistic is 34. Our calculations also showed that MGP 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 let’s analyze the latest hedge fund action surrounding MGM Growth Properties LLC (NYSE:MGP).
Alec Litowitz of Magnetar Capital
Do Hedge Funds Think MGP Is A Good Stock To Buy Now?
At Q3’s end, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -7% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in MGP over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Magnetar Capital was the largest shareholder of MGM Growth Properties LLC (NYSE:MGP), with a stake worth $121.9 million reported as of the end of September. Trailing Magnetar Capital was Governors Lane, which amassed a stake valued at $60.6 million. Millennium Management, Soros Fund Management, and Balyasny 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 BlueMar Capital Management allocated the biggest weight to MGM Growth Properties LLC (NYSE:MGP), around 8.14% of its 13F portfolio. LDR Capital is also relatively very bullish on the stock, designating 6.01 percent of its 13F equity portfolio to MGP.
Seeing as MGM Growth Properties LLC (NYSE:MGP) has faced falling interest from the entirety of the hedge funds we track, logic holds that there were a few funds who sold off their full holdings by the end of the third quarter. At the top of the heap, Eduardo Abush’s Waterfront Capital Partners dumped the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising close to $46.4 million in stock. Richard Driehaus’s fund, Driehaus Capital, also dropped its stock, about $14.7 million worth. These moves are interesting, as total hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MGM Growth Properties LLC (NYSE:MGP) but similarly valued. We will take a look at Hanesbrands Inc. (NYSE:HBI), ASGN Incorporated (NYSE:ASGN), New York Community Bancorp, Inc. (NYSE:NYCB), FIGS Inc. (NYSE:FIGS), Leggett & Platt, Inc. (NYSE:LEG), Power Integrations Inc (NASDAQ:POWI), and Ingredion Incorporated (NYSE:INGR). This group of stocks’ market caps are closest to MGP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HBI | 34 | 501052 | 1 |
| ASGN | 11 | 43470 | -4 |
| NYCB | 27 | 482594 | -3 |
| FIGS | 21 | 821787 | 9 |
| LEG | 16 | 56164 | 2 |
| POWI | 24 | 192517 | 3 |
| INGR | 20 | 391796 | -1 |
| Average | 21.9 | 355626 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.9 hedge funds with bullish positions and the average amount invested in these stocks was $356 million. That figure was $537 million in MGP’s case. Hanesbrands Inc. (NYSE:HBI) is the most popular stock in this table. On the other hand ASGN Incorporated (NYSE:ASGN) is the least popular one with only 11 bullish hedge fund positions. MGM Growth Properties LLC (NYSE:MGP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MGP is 61.6. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately MGP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MGP were disappointed as the stock returned 0.3% since the end of September (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 many of these stocks already outperformed the market since 2019.
Follow Mgm Growth Properties Llc (NYSE:MGP)
Follow Mgm Growth Properties Llc (NYSE:MGP)
Suggested Articles:
- 12 Most Influencial Chinese Entrepreneurs
- Billionaire Carl Icahn’s Top 10 Picks
- 15 Most Valuable Asian Companies
Disclosure: None. This article was originally published at Insider Monkey.
