Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of E2open Parent Holdings, Inc. (NYSE:ETWO).
E2open Parent Holdings, Inc. (NYSE:ETWO) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 35 hedge funds’ portfolios at the end of the second quarter of 2021. Our calculations also showed that ETWO isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as DouYu International Holdings Limited (NASDAQ:DOYU), LexinFintech Holdings Ltd. (NASDAQ:LX), and WSFS Financial Corporation (NASDAQ:WSFS) to gather more data points.
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Christian Leone of Luxor Capital Group
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Do Hedge Funds Think ETWO Is A Good Stock To Buy Now?
At second quarter’s end, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ETWO over the last 24 quarters. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
The largest stake in E2open Parent Holdings, Inc. (NYSE:ETWO) was held by Elliott Investment Management, which reported holding $319.5 million worth of stock at the end of June. It was followed by Windacre Partnership with a $203.5 million position. Other investors bullish on the company included Eminence Capital, Atalan Capital, and Luxor Capital Group. In terms of the portfolio weights assigned to each position Altai Capital allocated the biggest weight to E2open Parent Holdings, Inc. (NYSE:ETWO), around 26.2% of its 13F portfolio. Shelter Haven Capital Management is also relatively very bullish on the stock, setting aside 15.83 percent of its 13F equity portfolio to ETWO.
Because E2open Parent Holdings, Inc. (NYSE:ETWO) has experienced bearish sentiment from the smart money, we can see that there lies a certain “tier” of hedgies that decided to sell off their positions entirely last quarter. It’s worth mentioning that Brandon Haley’s Holocene Advisors dropped the largest stake of all the hedgies tracked by Insider Monkey, valued at close to $8.9 million in stock. Spencer M. Waxman’s fund, Shannon River Fund Management, also said goodbye to its stock, about $7 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now review hedge fund activity in other stocks similar to E2open Parent Holdings, Inc. (NYSE:ETWO). These stocks are DouYu International Holdings Limited (NASDAQ:DOYU), LexinFintech Holdings Ltd. (NASDAQ:LX), WSFS Financial Corporation (NASDAQ:WSFS), Golden Ocean Group Ltd (NASDAQ:GOGL), TowneBank (NASDAQ:TOWN), Paramount Group Inc (NYSE:PGRE), and Controladora Vuela Co Avcn SA CV (NYSE:VLRS). This group of stocks’ market caps are closest to ETWO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DOYU | 25 | 231115 | -4 |
| LX | 12 | 64778 | 1 |
| WSFS | 11 | 69307 | 1 |
| GOGL | 15 | 133392 | 4 |
| TOWN | 10 | 42337 | 1 |
| PGRE | 17 | 147529 | 0 |
| VLRS | 16 | 253576 | 2 |
| Average | 15.1 | 134576 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $135 million. That figure was $1095 million in ETWO’s case. DouYu International Holdings Limited (NASDAQ:DOYU) is the most popular stock in this table. On the other hand TowneBank (NASDAQ:TOWN) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks E2open Parent Holdings, Inc. (NYSE:ETWO) is more popular among hedge funds. Our overall hedge fund sentiment score for ETWO is 85. 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 21.8% in 2021 through October 11th and still beat the market by 4.4 percentage points. Unfortunately ETWO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ETWO were disappointed as the stock returned -1.8% since the end of the second quarter (through 10/11) 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.
Follow E2Open Parent Holdings Inc. (NYSE:ETWO)
Follow E2Open Parent Holdings Inc. (NYSE:ETWO)
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Disclosure: None. This article was originally published at Insider Monkey.
