Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of PPG Industries, Inc. (NYSE:PPG).
PPG Industries, Inc. (NYSE:PPG) has experienced an increase in support from the world’s most elite money managers recently. PPG Industries, Inc. (NYSE:PPG) was in 30 hedge funds’ portfolios at the end of September. The all time high for this statistic is 51. There were 26 hedge funds in our database with PPG positions at the end of the second quarter. Our calculations also showed that PPG 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 go over the fresh hedge fund action regarding PPG Industries, Inc. (NYSE:PPG).
Ray Dalio of Bridgewater Associates
Do Hedge Funds Think PPG Is A Good Stock To Buy Now?
At the end of September, a total of 30 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in PPG over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Israel Englander’s Millennium Management has the biggest position in PPG Industries, Inc. (NYSE:PPG), worth close to $93.3 million, comprising 0.1% of its total 13F portfolio. Coming in second is Bridgewater Associates, led by Ray Dalio, holding a $52 million position; 0.3% of its 13F portfolio is allocated to the company. Some other professional money managers with similar optimism consist of Cliff Asness’s AQR Capital Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Quantamental Technologies allocated the biggest weight to PPG Industries, Inc. (NYSE:PPG), around 1.17% of its 13F portfolio. Prospector Partners is also relatively very bullish on the stock, dishing out 1.01 percent of its 13F equity portfolio to PPG.
With a general bullishness amongst the heavyweights, some big names have jumped into PPG Industries, Inc. (NYSE:PPG) headfirst. ExodusPoint Capital, managed by Michael Gelband, established the most valuable position in PPG Industries, Inc. (NYSE:PPG). ExodusPoint Capital had $14 million invested in the company at the end of the quarter. Renaissance Technologies also made a $5 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Paul Tudor Jones’s Tudor Investment Corp, and Andrew Weiss’s Weiss Asset Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as PPG Industries, Inc. (NYSE:PPG) but similarly valued. These stocks are BeiGene, Ltd. (NASDAQ:BGNE), Xcel Energy Inc (NASDAQ:XEL), The Trade Desk, Inc. (NASDAQ:TTD), Archer Daniels Midland Company (NYSE:ADM), Old Dominion Freight Line, Inc. (NASDAQ:ODFL), Copart, Inc. (NASDAQ:CPRT), and Pinterest, Inc. (NYSE:PINS). This group of stocks’ market caps are closest to PPG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BGNE | 16 | 6418381 | -5 |
| XEL | 26 | 498007 | 4 |
| TTD | 19 | 499103 | -6 |
| ADM | 27 | 351486 | -14 |
| ODFL | 33 | 709810 | -14 |
| CPRT | 42 | 998095 | -2 |
| PINS | 58 | 2006795 | -5 |
| Average | 31.6 | 1640240 | -6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.6 hedge funds with bullish positions and the average amount invested in these stocks was $1640 million. That figure was $318 million in PPG’s case. Pinterest, Inc. (NYSE:PINS) is the most popular stock in this table. On the other hand BeiGene, Ltd. (NASDAQ:BGNE) is the least popular one with only 16 bullish hedge fund positions. PPG Industries, Inc. (NYSE:PPG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for PPG is 43.3. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. A small number of hedge funds were also right about betting on PPG as the stock returned 8.2% since the end of the third quarter (through 11/30) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
