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 The Procter & Gamble Company (NYSE:PG) based on that data and determine whether they were really smart about the stock.
The Procter & Gamble Company (NYSE:PG) has experienced an increase in enthusiasm from smart money in recent months. The Procter & Gamble Company (NYSE:PG) was in 69 hedge funds’ portfolios at the end of September. The all time high for this statistic is 83. Our calculations also showed that PG 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. Keeping this in mind we’re going to view the new hedge fund action encompassing The Procter & Gamble Company (NYSE:PG).
Do Hedge Funds Think PG Is A Good Stock To Buy Now?
At third quarter’s end, a total of 69 of the hedge funds tracked by Insider Monkey were long this stock, a change of 1% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards PG over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Cedar Rock Capital was the largest shareholder of The Procter & Gamble Company (NYSE:PG), with a stake worth $1035.9 million reported as of the end of September. Trailing Cedar Rock Capital was Arrowstreet Capital, which amassed a stake valued at $753.2 million. Trian Partners, Citadel Investment Group, and Bridgewater Associates 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 Cedar Rock Capital allocated the biggest weight to The Procter & Gamble Company (NYSE:PG), around 24.83% of its 13F portfolio. Trian Partners is also relatively very bullish on the stock, earmarking 9.16 percent of its 13F equity portfolio to PG.
As one would reasonably expect, some big names have jumped into The Procter & Gamble Company (NYSE:PG) headfirst. Holocene Advisors, managed by Brandon Haley, assembled the largest position in The Procter & Gamble Company (NYSE:PG). Holocene Advisors had $97.6 million invested in the company at the end of the quarter. Jack Woodruff’s Candlestick Capital Management also initiated a $36.3 million position during the quarter. The other funds with new positions in the stock are Louis Bacon’s Moore Global Investments, Michael Rockefeller and KarláKroeker’s Woodline Partners, and Brian Scudieri’s Kehrs Ridge Capital.
Let’s also examine hedge fund activity in other stocks similar to The Procter & Gamble Company (NYSE:PG). We will take a look at ASML Holding N.V. (NASDAQ:ASML), The Walt Disney Company (NYSE:DIS), Paypal Holdings Inc (NASDAQ:PYPL), Adobe Inc. (NASDAQ:ADBE), Netflix, Inc. (NASDAQ:NFLX), salesforce.com, inc. (NYSE:CRM), and Comcast Corporation (NASDAQ:CMCSA). This group of stocks’ market valuations are similar to PG’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ASML | 41 | 4858031 | -3 |
| DIS | 101 | 9416047 | -11 |
| PYPL | 123 | 12880990 | -20 |
| ADBE | 95 | 12682168 | 6 |
| NFLX | 106 | 14759355 | -7 |
| CRM | 119 | 14900848 | 11 |
| CMCSA | 75 | 8547154 | -9 |
| Average | 94.3 | 11149228 | -4.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 94.3 hedge funds with bullish positions and the average amount invested in these stocks was $11149 million. That figure was $6414 million in PG’s case. Paypal Holdings Inc (NASDAQ:PYPL) is the most popular stock in this table. On the other hand ASML Holding N.V. (NASDAQ:ASML) is the least popular one with only 41 bullish hedge fund positions. The Procter & Gamble Company (NYSE:PG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for PG is 48. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. A small number of hedge funds were also right about betting on PG as the stock returned 16.1% since the end of the third quarter (through 1/31) and outperformed the market by an even larger margin.
Follow Procter & Gamble Co (NYSE:PG)
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Disclosure: None. This article was originally published at Insider Monkey.
