The latest 13F reporting period has come and gone, and 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, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought International Game Technology PLC (NYSE:IGT) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Is International Game Technology PLC (NYSE:IGT) an outstanding stock to buy now? Investors who are in the know were in a bullish mood. The number of bullish hedge fund bets went up by 4 lately. International Game Technology PLC (NYSE:IGT) was in 36 hedge funds’ portfolios at the end of September. The all time high for this statistic is 37. Our calculations also showed that IGT 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. With all of this in mind we’re going to analyze the new hedge fund action surrounding International Game Technology PLC (NYSE:IGT).
Brian Gustavson of 1060 Capital Management
Do Hedge Funds Think IGT Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 36 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards IGT over the last 25 quarters. So, let’s check 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, Parsifal Capital Management, managed by David Zorub, holds the biggest position in International Game Technology PLC (NYSE:IGT). Parsifal Capital Management has a $92.2 million position in the stock, comprising 6.3% of its 13F portfolio. Sitting at the No. 2 spot is Antara Capital, led by Himanshu Gulati, holding a $60.5 million call position; the fund has 4.6% of its 13F portfolio invested in the stock. Remaining peers with similar optimism comprise Joseph Samuels’s Islet Management, John Overdeck and David Siegel’s Two Sigma Advisors and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Alden Global Capital allocated the biggest weight to International Game Technology PLC (NYSE:IGT), around 44.87% of its 13F portfolio. 1060 Capital Management is also relatively very bullish on the stock, designating 23.82 percent of its 13F equity portfolio to IGT.
As aggregate interest increased, key hedge funds were breaking ground themselves. Parsifal Capital Management, managed by David Zorub, created the biggest position in International Game Technology PLC (NYSE:IGT). Parsifal Capital Management had $92.2 million invested in the company at the end of the quarter. Randall Smith’s Alden Global Capital also initiated a $11.1 million position during the quarter. The following funds were also among the new IGT investors: Leon Shaulov’s Maplelane Capital, Brian Gustavson and Andrew Haley’s 1060 Capital Management, and Brad Stephens’s Six Columns Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as International Game Technology PLC (NYSE:IGT) but similarly valued. These stocks are DoubleVerify Holdings, Inc. (NYSE:DV), HollyFrontier Corporation (NYSE:HFC), SLM Corp (NASDAQ:SLM), Element Solutions Inc. (NYSE:ESI), Squarespace Inc. (NYSE:SQSP), TFS Financial Corporation (NASDAQ:TFSL), and Evercore Inc. (NYSE:EVR). This group of stocks’ market values match IGT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DV | 10 | 496623 | 10 |
| HFC | 24 | 411801 | -6 |
| SLM | 27 | 891503 | 0 |
| ESI | 28 | 649935 | 5 |
| SQSP | 11 | 93960 | 11 |
| TFSL | 9 | 133035 | 0 |
| EVR | 32 | 388540 | 1 |
| Average | 20.1 | 437914 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.1 hedge funds with bullish positions and the average amount invested in these stocks was $438 million. That figure was $491 million in IGT’s case. Evercore Inc. (NYSE:EVR) is the most popular stock in this table. On the other hand TFS Financial Corporation (NASDAQ:TFSL) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks International Game Technology PLC (NYSE:IGT) is more popular among hedge funds. Our overall hedge fund sentiment score for IGT is 88.2. 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 managed to beat the market by another 3.6 percentage points. Hedge funds were somewhat right about betting on IGT as the stock returned 2.5% since the end of September (through January 31st) and outperformed the top 5 hedge fund stocks but not the market. This is a rare phenomenon as top hedge fund stocks usually beat the market over the long-term.
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Disclosure: None. This article was originally published at Insider Monkey.
