Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Wynn Resorts, Limited (NASDAQ:WYNN), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Wynn Resorts, Limited (NASDAQ:WYNN) has experienced an increase in activity from the world’s largest hedge funds recently. WYNN was in 38 hedge funds’ portfolios at the end of September. There were 30 hedge funds in our database with WYNN positions at the end of the previous quarter. At the end of this article we will also compare WYNN to other stocks including Duke Realty Corp (NYSE:DRE), Snap-on Incorporated (NYSE:SNA), and Vereit Inc (NYSE:VER) to get a better sense of its popularity.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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With all of this in mind, we’re going to take a glance at the new action surrounding Wynn Resorts, Limited (NASDAQ:WYNN).
How have hedgies been trading Wynn Resorts, Limited (NASDAQ:WYNN)?
At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey were long this stock, a 27% increase from the second quarter of 2016. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Mason Hawkins’ Southeastern Asset Management has the most valuable position in Wynn Resorts, Limited (NASDAQ:WYNN), worth close to $1.16 billion, corresponding to 11.1% of its total 13F portfolio. The second largest stake is held by Platinum Asset Management, managed by Kerr Neilson, which holds a $166.9 million position; 3.9% of its 13F portfolio is allocated to the company. Remaining members of the smart money that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, D E Shaw, and Principal Global Investors’s Columbus Circle Investors.
Now, key money managers were leading the bulls’ herd. Arrowstreet Capital created the most outsized position in Wynn Resorts, Limited (NASDAQ:WYNN). Arrowstreet Capital had $125.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $65.6 million position during the quarter. The following funds were also among the new WYNN investors: Ken Griffin’s Citadel Investment Group, Gabriel Plotkin’s Melvin Capital Management, and Jim Simons’ Renaissance Technologies.
Let’s check out hedge fund activity in other stocks similar to Wynn Resorts, Limited (NASDAQ:WYNN). We will take a look at Duke Realty Corp (NYSE:DRE), Snap-on Incorporated (NYSE:SNA), Vereit Inc (NYSE:VER), and Buckeye Partners, L.P. (NYSE:BPL). This group of stocks’ market caps are similar to WYNN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DRE | 11 | 44166 | 1 |
| SNA | 27 | 651564 | -1 |
| VER | 27 | 664382 | -2 |
| BPL | 13 | 67387 | -1 |
As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $357 million. That figure was $2.25 billion in WYNN’s case. Snap-on Incorporated (NYSE:SNA) is the most popular stock in this table. On the other hand Duke Realty Corp (NYSE:DRE) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Wynn Resorts, Limited (NASDAQ:WYNN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and growing ever more bullish, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
