Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of JELD-WEN Holding, Inc. (NYSE:JELD) based on that data.
JELD-WEN Holding, Inc. (NYSE:JELD) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic is 29. JELD investors should be aware of an increase in activity from the world’s largest hedge funds in recent months. There were 23 hedge funds in our database with JELD positions at the end of the second quarter. Our calculations also showed that JELD isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Chuck Royce of Royce & Associates
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. Keeping this in mind let’s take a peek at the latest hedge fund action encompassing JELD-WEN Holding, Inc. (NYSE:JELD).
Do Hedge Funds Think JELD Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in JELD over the last 25 quarters. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
The largest stake in JELD-WEN Holding, Inc. (NYSE:JELD) was held by Pzena Investment Management, which reported holding $185.3 million worth of stock at the end of September. It was followed by Soapstone Capital with a $14.1 million position. Other investors bullish on the company included Royce & Associates, Islet Management, and BeaconLight Capital. In terms of the portfolio weights assigned to each position Soapstone Capital allocated the biggest weight to JELD-WEN Holding, Inc. (NYSE:JELD), around 5.91% of its 13F portfolio. BeaconLight Capital is also relatively very bullish on the stock, setting aside 2.64 percent of its 13F equity portfolio to JELD.
As one would reasonably expect, key hedge funds have been driving this bullishness. Islet Management, managed by Joseph Samuels, assembled the most outsized position in JELD-WEN Holding, Inc. (NYSE:JELD). Islet Management had $7 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $1 million investment in the stock during the quarter. The following funds were also among the new JELD investors: Jinghua Yan’s TwinBeech Capital and Peter Algert’s Algert Global.
Let’s also examine hedge fund activity in other stocks similar to JELD-WEN Holding, Inc. (NYSE:JELD). These stocks are Instil Bio, Inc. (NASDAQ:TIL), Cinemark Holdings, Inc. (NYSE:CNK), Custom Truck One Source Inc. (NYSE:CTOS), Brandywine Realty Trust (NYSE:BDN), ATA Inc. (NASDAQ:ATAI), Outset Medical, Inc. (NASDAQ:OM), and Whiting Petroleum Corporation (NYSE:WLL). This group of stocks’ market values are closest to JELD’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TIL | 11 | 510366 | -3 |
| CNK | 26 | 271158 | -6 |
| CTOS | 14 | 64389 | 1 |
| BDN | 8 | 55564 | 1 |
| ATAI | 17 | 109036 | -3 |
| OM | 18 | 602748 | 0 |
| WLL | 20 | 217104 | -4 |
| Average | 16.3 | 261481 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.3 hedge funds with bullish positions and the average amount invested in these stocks was $261 million. That figure was $250 million in JELD’s case. Cinemark Holdings, Inc. (NYSE:CNK) is the most popular stock in this table. On the other hand Brandywine Realty Trust (NYSE:BDN) is the least popular one with only 8 bullish hedge fund positions. JELD-WEN Holding, Inc. (NYSE:JELD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for JELD is 75.3. 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. 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 JELD wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on JELD were disappointed as the stock returned 4.6% 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.
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Disclosure: None. This article was originally published at Insider Monkey.
