Is Dunkin Brands Group Inc (NASDAQ:DNKN) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have 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.
Dunkin Brands Group Inc (NASDAQ:DNKN) has experienced an increase in hedge fund sentiment of late. At the end of this article we will also compare DNKN to other stocks including B/E Aerospace Inc (NASDAQ:BEAV), Health Net, Inc. (NYSE:HNT), and Jacobs Engineering Group Inc (NYSE:JEC) to get a better sense of its popularity.
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With all of this in mind, let’s check out the key action surrounding Dunkin Brands Group Inc (NASDAQ:DNKN).
What have hedge funds been doing with Dunkin Brands Group Inc (NASDAQ:DNKN)?
Heading into Q4, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 47% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Tybourne Capital Management, managed by Eashwar Krishnan, holds the most valuable position in Dunkin Brands Group Inc (NASDAQ:DNKN). Tybourne Capital Management has a $153.7 million position in the stock, comprising 10.8% of its 13F portfolio. On Tybourne Capital Management’s heels is Brett Barakett of Tremblant Capital, with a $47.9 million call position; the fund has 3.1% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions encompass Vivek Mehta and Aaron Husock’s ShearLink Capital, Daniel Lascano’s Lomas Capital Management and Gabriel Plotkin’s Melvin Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Tremblant Capital, managed by Brett Barakett, established the most valuable call position in Dunkin Brands Group Inc (NASDAQ:DNKN). Tremblant Capital had $47.9 million invested in the company at the end of the quarter. Gabriel Plotkin’s Melvin Capital Management also made a $14.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’ Renaissance Technologies, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s check out hedge fund activity in other stocks similar to Dunkin Brands Group Inc (NASDAQ:DNKN). These stocks are B/E Aerospace Inc (NASDAQ:BEAV), Health Net, Inc. (NYSE:HNT), Jacobs Engineering Group Inc (NYSE:JEC), and Aluminum Corp. of China Limited (ADR) (NYSE:ACH). This group of stocks’ market caps are similar to DNKN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BEAV | 46 | 1697039 | -4 |
| HNT | 43 | 1059112 | 6 |
| JEC | 26 | 179316 | 10 |
| ACH | 5 | 3478 | -1 |
As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $735 million. That figure was $319 million in DNKN’s case. B/E Aerospace Inc (NASDAQ:BEAV) is the most popular stock in this table. On the other hand Aluminum Corp. of China Limited (ADR) (NYSE:ACH) is the least popular one with only 5 bullish hedge fund positions. Dunkin Brands Group Inc (NASDAQ:DNKN) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BEAV might be a better candidate to consider a long position.
