The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Expedia Group Inc (NASDAQ:EXPE) and determine whether the smart money was really smart about this stock.
Expedia Group Inc (NASDAQ:EXPE) was in 78 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 87. EXPE has seen a decrease in activity from the world’s largest hedge funds lately. There were 87 hedge funds in our database with EXPE holdings at the end of June. Our calculations also showed that EXPE 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 fresh hedge fund action encompassing Expedia Group Inc (NASDAQ:EXPE).
Do Hedge Funds Think EXPE Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 78 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -10% from the previous quarter. By comparison, 64 hedge funds held shares or bullish call options in EXPE a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Daniel Sundheim’s D1 Capital Partners has the biggest position in Expedia Group Inc (NASDAQ:EXPE), worth close to $1.882 billion, comprising 10.5% of its total 13F portfolio. The second largest stake is held by PAR Capital Management, led by Paul Reeder and Edward Shapiro, holding a $664.8 million position; the fund has 15.9% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish consist of Gabriel Plotkin’s Melvin Capital Management, Panayotis Takis Sparaggis’s Alkeon Capital Management and D. E. Shaw’s D E Shaw. In terms of the portfolio weights assigned to each position PAR Capital Management allocated the biggest weight to Expedia Group Inc (NASDAQ:EXPE), around 15.95% of its 13F portfolio. Anomaly Capital Management is also relatively very bullish on the stock, setting aside 11.41 percent of its 13F equity portfolio to EXPE.
Seeing as Expedia Group Inc (NASDAQ:EXPE) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedge funds that slashed their entire stakes last quarter. At the top of the heap, Brad Gerstner’s Altimeter Capital Management dumped the largest position of the “upper crust” of funds watched by Insider Monkey, worth close to $60.1 million in stock, and Guy Shahar’s DSAM Partners was right behind this move, as the fund cut about $37.7 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 9 funds last quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Expedia Group Inc (NASDAQ:EXPE) but similarly valued. We will take a look at Sirius XM Holdings Inc (NASDAQ:SIRI), Kansas City Southern (NYSE:KSU), Upstart Holdings, Inc. (NASDAQ:UPST), Yum China Holdings, Inc. (NYSE:YUMC), Hartford Financial Services Group Inc (NYSE:HIG), Hess Corporation (NYSE:HES), and Devon Energy Corporation (NYSE:DVN). All of these stocks’ market caps match EXPE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SIRI | 27 | 470025 | 1 |
| KSU | 59 | 4323096 | -2 |
| UPST | 23 | 5076367 | 2 |
| YUMC | 30 | 832648 | -2 |
| HIG | 34 | 941705 | -9 |
| HES | 27 | 726783 | -4 |
| DVN | 48 | 1400610 | -2 |
| Average | 35.4 | 1967319 | -2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 35.4 hedge funds with bullish positions and the average amount invested in these stocks was $1967 million. That figure was $6471 million in EXPE’s case. Kansas City Southern (NYSE:KSU) is the most popular stock in this table. On the other hand Upstart Holdings, Inc. (NASDAQ:UPST) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks Expedia Group Inc (NASDAQ:EXPE) is more popular among hedge funds. Our overall hedge fund sentiment score for EXPE is 72.9. 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 returned 29.6% in 2021 and managed to beat the market by another 3.6 percentage points. Hedge funds were also right about betting on EXPE as the stock returned 11.8% since the end of September (through 1/31) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
