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. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards Payoneer Global Inc. (NASDAQ:PAYO).
Payoneer Global Inc. (NASDAQ:PAYO) has experienced a decrease in support from the world’s most elite money managers recently. Payoneer Global Inc. (NASDAQ:PAYO) was in 28 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 40. There were 40 hedge funds in our database with PAYO positions at the end of the second quarter. Our calculations also showed that PAYO 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 recent hedge fund action encompassing Payoneer Global Inc. (NASDAQ:PAYO).
Richard Gerson of Falcon Edge Capital
Do Hedge Funds Think PAYO Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -30% from the second quarter of 2021. By comparison, 0 hedge funds held shares or bullish call options in PAYO 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.
More specifically, Jasper Ridge Partners was the largest shareholder of Payoneer Global Inc. (NASDAQ:PAYO) , with a stake worth $104.4 million reported as of the end of September. Trailing Jasper Ridge Partners was Adage Capital Management, which amassed a stake valued at $25.7 million. Millennium Management, Echo Street Capital Management, and Portsea 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 Jasper Ridge Partners allocated the biggest weight to Payoneer Global Inc. (NASDAQ:PAYO) , around 4.49% of its 13F portfolio. Portsea Asset Management is also relatively very bullish on the stock, setting aside 4.23 percent of its 13F equity portfolio to PAYO.
Due to the fact that Payoneer Global Inc. (NASDAQ:PAYO) has faced a decline in interest from the entirety of the hedge funds we track, we can see that there was a specific group of fund managers that decided to sell off their positions entirely heading into Q4. At the top of the heap, Anand Parekh’s Alyeska Investment Group said goodbye to the largest position of all the hedgies monitored by Insider Monkey, totaling close to $19.8 million in stock. Zachary Miller’s fund, Parian Global Management, also sold off its stock, about $15.4 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 12 funds heading into Q4.
Let’s go over hedge fund activity in other stocks similar to Payoneer Global Inc. (NASDAQ:PAYO) . These stocks are Paymentus Holdings, Inc. (NYSE:PAY), Momentive Global Inc (NASDAQ:MNTV), Nova Ltd. (NASDAQ:NVMI), Uniti Group Inc. (NASDAQ:UNIT), Olink Holding AB (publ) (NASDAQ:OLK), Kirby Corporation (NYSE:KEX), and Kontoor Brands, Inc. (NYSE:KTB). This group of stocks’ market caps are closest to PAYO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PAY | 12 | 32513 | 0 |
| MNTV | 27 | 191870 | -1 |
| NVMI | 22 | 331000 | 4 |
| UNIT | 14 | 350916 | -2 |
| OLK | 14 | 74288 | -2 |
| KEX | 24 | 296201 | 3 |
| KTB | 17 | 118883 | -6 |
| Average | 18.6 | 199382 | -0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.6 hedge funds with bullish positions and the average amount invested in these stocks was $199 million. That figure was $211 million in PAYO’s case. Momentive Global Inc (NASDAQ:MNTV) is the most popular stock in this table. On the other hand Paymentus Holdings, Inc. (NYSE:PAY) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Payoneer Global Inc. (NASDAQ:PAYO) is more popular among hedge funds. Our overall hedge fund sentiment score for PAYO is 64. 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 PAYO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PAYO were disappointed as the stock returned -21.1% 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.
