The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Yellow Corporation (NASDAQ:YELL) based on those filings.
Is Yellow Corporation (NASDAQ:YELL) the right investment to pursue these days? Investors who are in the know were becoming hopeful. The number of long hedge fund positions increased by 3 lately. Yellow Corporation (NASDAQ:YELL) was in 18 hedge funds’ portfolios at the end of March. The all time high for this statistic is 27. Our calculations also showed that YELL isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most stock holders, hedge funds are perceived as slow, outdated financial vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, We choose to focus on the elite of this group, around 850 funds. These money managers direct the majority of all hedge funds’ total capital, and by keeping track of their best equity investments, Insider Monkey has come up with a number of investment strategies that have historically outrun the market. Insider Monkey’s flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Ron Gutfleish of Elm Ridge Capital
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Do Hedge Funds Think YELL Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards YELL over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, D. E. Shaw’s D E Shaw has the number one position in Yellow Corporation (NASDAQ:YELL), worth close to $15 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is George McCabe of Portolan Capital Management, with a $13.2 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Ron Gutfleish’s Elm Ridge Capital. In terms of the portfolio weights assigned to each position 0 allocated the biggest weight to Yellow Corporation (NASDAQ:YELL), around 3.4% of its 13F portfolio. 0 is also relatively very bullish on the stock, dishing out 1.04 percent of its 13F equity portfolio to YELL.
As one would reasonably expect, key money managers were breaking ground themselves. Brant Point Investment Management, managed by Ira Unschuld, assembled the most valuable position in Yellow Corporation (NASDAQ:YELL). Brant Point Investment Management had $2.1 million invested in the company at the end of the quarter. Sander Gerber’s Hudson Bay Capital Management also made a $0.9 million investment in the stock during the quarter. The other funds with brand new YELL positions are Kamyar Khajavi’s MIK Capital, Matthew Hulsizer’s PEAK6 Capital Management, and Kevin Cottrell and Chris LaSusa’s KCL Capital.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Yellow Corporation (NASDAQ:YELL) but similarly valued. These stocks are Eagle Bulk Shipping Inc. (NASDAQ:EGLE), Regis Corporation (NYSE:RGS), Computer Programs & Systems, Inc. (NASDAQ:CPSI), Benefitfocus Inc (NASDAQ:BNFT), Fusion Pharmaceuticals Inc. (NASDAQ:FUSN), ANI Pharmaceuticals Inc (NASDAQ:ANIP), and Universal Insurance Holdings, Inc. (NYSE:UVE). This group of stocks’ market values resemble YELL’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EGLE | 12 | 259614 | 5 |
| RGS | 10 | 173310 | -3 |
| CPSI | 9 | 13950 | -4 |
| BNFT | 17 | 103471 | 3 |
| FUSN | 9 | 110659 | -3 |
| ANIP | 6 | 10449 | -4 |
| UVE | 13 | 32797 | -1 |
| Average | 10.9 | 100607 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.9 hedge funds with bullish positions and the average amount invested in these stocks was $101 million. That figure was $50 million in YELL’s case. Benefitfocus Inc (NASDAQ:BNFT) is the most popular stock in this table. On the other hand ANI Pharmaceuticals Inc (NASDAQ:ANIP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Yellow Corporation (NASDAQ:YELL) is more popular among hedge funds. Our overall hedge fund sentiment score for YELL is 78. 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 28.5% in 2021 through July 23rd and still beat the market by 10.1 percentage points. Unfortunately YELL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on YELL were disappointed as the stock returned -41.4% since the end of the first quarter (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 since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.