Perspecta (PRSP), Wyndham Hotels (WH) Tops Among Hedge Funds’ Favorite Newly-Listed Stocks

GreenSky Inc (NASDAQ:GSKY)

Number of Hedge Fund Shareholders of GSKY (as of June 30): 25

Value of Hedge Funds’ Holdings in GSKY (as of June 30): $145.98 million

GreenSky Inc (NASDAQ:GSKY) was the third-most popular newly-listed stock during Q2, with 25 hedge funds adding it to their 13F portfolios during the quarter. Israel Englander’s Millennium Management (1.32 million shares) and Christopher Medlock James’ Partner Fund Management (812,328 shares) were among the top new GreenSky shareholders.

GreenSky Inc (NASDAQ:GSKY) provides nearly instantaneous financing solutions for businesses and customers (with willing banks operating as the middlemen) that helps drive sales. GreenSky has aggressively grown its sales force in recent months and hiked its transaction volume by 36% in the second-quarter. With just over 13,000 companies in its fold, there is huge growth potential, which a recent strategic alliance with American Express Company (NYSE:AXP) should help accelerate.

Wyndham Hotels & Resorts Inc (NYSE:WH)

Number of Hedge Fund Shareholders of WH (as of June 30): 34

Value of Hedge Funds’ Holdings in WH (as of June 30): $841.55 million

Wyndham Hotels & Resorts Inc (NYSE:WH) was split off from the former Wyndham Worldwide in the second-quarter, which was rebranded as Wyndham Destinations Inc (NYSE:WYND) following the split. 34 hedge funds that we track were shareholders of Wyndham Worldwide’s former hotels business on June 30, including Brett Barakett’s Tremblant Capital (820,082 shares) and Clint Carlson’s Carlson Capital (700,000 shares).

Goldman Sachs added Wyndham Hotels & Resorts Inc (NYSE:WH) to its Conviction List in late-June, citing its exposure to inflecting oil patch markets and the potential synergies from its acquisition of La Quinta, which was finalized on the same day Wyndham Hotels was spun off (May 31). Wyndham’s Q2 revenue of $435 million widely missed estimates of $494.36 million, though its adjusted EPS of $0.86 handily topped the $0.78 consensus. Thanks to a growing middle class that is exhibiting a burgeoning appetite for travel, Wyndham could enjoy solid growth opportunities in the coming years.

Perspecta Inc (NYSE:PRSP)

Number of Hedge Fund Shareholders of PRSP (as of June 30): 50

Value of Hedge Funds’ Holdings in PRSP (as of June 30): $504.68 million

Topping the list is Perspecta Inc (NYSE:PRSP), another company that was spun-off during the second-quarter, in this case from DXC Technology Co (NYSE:DXC). Furthermore, the new company also completed its planned mergers with Vencore Inc. and KeyPoint Government Solutions ahead of its public debut. Lee Ainslie’s Maverick Capital (3.26 million shares) and James Dinan’s York Capital Management (2.36 million shares) were among Perspecta’s biggest bulls in the second-quarter.

While hedge funds have fully embraced Perspecta Inc (NYSE:PRSP), analysts appear to be taking a more cautious approach, noting that Perspecta will likely be relying on cost synergies to drive meaningful growth. Perspecta provides government agencies with analytics and data services, systems engineering and integration, and cybersecurity, among other technology solutions. The company’s pro-forma revenue was $1.04 billion in its fiscal 2019 first-quarter, up by 2% year-over-year.

Disclosure: None