In this article we will check out the progression of hedge fund sentiment towards Global Blue Group Holding AG (NYSE:GB) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Global Blue Group Holding AG (NYSE:GB) has experienced an increase in support from the world’s most elite money managers of late. Global Blue Group Holding AG (NYSE:GB) was in 16 hedge funds’ portfolios at the end of March. The all time high for this statistic is 21. Our calculations also showed that GB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Dan Loeb of Third Point
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Do Hedge Funds Think GB Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 7% from the previous quarter. The graph below displays the number of hedge funds with bullish position in GB over the last 23 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Among these funds, Silver Lake Partners held the most valuable stake in Global Blue Group Holding AG (NYSE:GB), which was worth $1652.7 million at the end of the fourth quarter. On the second spot was Third Point which amassed $111.1 million worth of shares. Alyeska Investment Group, Silver Lake Partners, and Beryl Capital Management 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 Silver Lake Partners allocated the biggest weight to Global Blue Group Holding AG (NYSE:GB), around 16.47% of its 13F portfolio. Third Point is also relatively very bullish on the stock, dishing out 0.75 percent of its 13F equity portfolio to GB.
Consequently, key hedge funds were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, assembled the most valuable position in Global Blue Group Holding AG (NYSE:GB). Alyeska Investment Group had $23.2 million invested in the company at the end of the quarter. Jody LaNasa’s Serengeti Asset Management also initiated a $0.7 million position during the quarter. The other funds with brand new GB positions are Anton Schutz’s Mendon Capital Advisors and Renaissance Technologies.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Global Blue Group Holding AG (NYSE:GB) but similarly valued. These stocks are Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), Xperi Holding Corporation (NASDAQ:XPER), South Jersey Industries Inc (NYSE:SJI), Nuvation Bio Inc. (NYSE:NUVB), Sally Beauty Holdings, Inc. (NYSE:SBH), Globalstar, Inc. (NYSE:GSAT), and Strategic Education Inc (NASDAQ:STRA). This group of stocks’ market values resemble GB’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PLAY | 24 | 540055 | 3 |
| XPER | 21 | 155873 | -1 |
| SJI | 32 | 482342 | 20 |
| NUVB | 30 | 543947 | 30 |
| SBH | 19 | 127433 | -4 |
| GSAT | 10 | 163384 | 1 |
| STRA | 16 | 232233 | 1 |
| Average | 21.7 | 320752 | 7.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.7 hedge funds with bullish positions and the average amount invested in these stocks was $321 million. That figure was $1811 million in GB’s case. South Jersey Industries Inc (NYSE:SJI) is the most popular stock in this table. On the other hand Globalstar, Inc. (NYSE:GSAT) is the least popular one with only 10 bullish hedge fund positions. Global Blue Group Holding AG (NYSE:GB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for GB is 42.5. 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 negative signal and 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 28.5% in 2021 through July 23rd and surpassed the market again by 10.1 percentage points. Unfortunately GB wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); GB investors were disappointed as the stock returned -26.1% since the end of March (through 7/23) 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 most of these stocks already outperformed the market in 2021.
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Disclosure: None. This article was originally published at Insider Monkey.
