The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Global Payments Inc (NYSE:GPN).
Global Payments Inc (NYSE:GPN) has experienced an increase in hedge fund interest in recent months. Global Payments Inc (NYSE:GPN) was in 68 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 68. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 66 hedge funds in our database with GPN holdings at the end of June. Our calculations also showed that GPN 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 let’s take a glance at the key hedge fund action encompassing Global Payments Inc (NYSE:GPN).
William Gray of Orbis Investment Management
Do Hedge Funds Think GPN Is A Good Stock To Buy Now?
At the end of September, a total of 68 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in GPN over the last 25 quarters. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, William B. Gray’s Orbis Investment Management has the number one position in Global Payments Inc (NYSE:GPN), worth close to $499.7 million, amounting to 3.4% of its total 13F portfolio. The second largest stake is held by Panayotis Takis Sparaggis of Alkeon Capital Management, with a $333.8 million position; 0.6% of its 13F portfolio is allocated to the company. Some other peers that are bullish encompass Ken Griffin’s Citadel Investment Group, Larry Robbins’s Glenview Capital and Robert Pitts’s Steadfast Capital Management. In terms of the portfolio weights assigned to each position Joho Capital allocated the biggest weight to Global Payments Inc (NYSE:GPN), around 16.67% of its 13F portfolio. Hunt Lane Capital is also relatively very bullish on the stock, earmarking 7.85 percent of its 13F equity portfolio to GPN.
Now, specific money managers have been driving this bullishness. Samlyn Capital, managed by Robert Pohly, established the most outsized call position in Global Payments Inc (NYSE:GPN). Samlyn Capital had $40.2 million invested in the company at the end of the quarter. Joe Milano’s Greenhouse Funds also initiated a $23.6 million position during the quarter. The other funds with brand new GPN positions are Mikal Patel’s Oribel Capital Management, Leon Shaulov’s Maplelane Capital, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Global Payments Inc (NYSE:GPN) but similarly valued. We will take a look at IQVIA Holdings, Inc. (NYSE:IQV), Synopsys, Inc. (NASDAQ:SNPS), BCE Inc. (NYSE:BCE), eBay Inc (NASDAQ:EBAY), Palantir Technologies Inc. (NYSE:PLTR), The Kraft Heinz Company (NASDAQ:KHC), and TE Connectivity Ltd. (NYSE:TEL). This group of stocks’ market caps are closest to GPN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IQV | 66 | 3756655 | -3 |
| SNPS | 43 | 2343901 | 2 |
| BCE | 15 | 129110 | 1 |
| EBAY | 49 | 2097933 | 10 |
| PLTR | 35 | 1634776 | 9 |
| KHC | 33 | 12321504 | 0 |
| TEL | 41 | 2188058 | 2 |
| Average | 40.3 | 3495991 | 3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 40.3 hedge funds with bullish positions and the average amount invested in these stocks was $3496 million. That figure was $3463 million in GPN’s case. IQVIA Holdings, Inc. (NYSE:IQV) is the most popular stock in this table. On the other hand BCE Inc. (NYSE:BCE) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Global Payments Inc (NYSE:GPN) is more popular among hedge funds. Our overall hedge fund sentiment score for GPN is 87. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately GPN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GPN were disappointed as the stock returned -24.5% since the end of the third quarter (through 11/30) 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.
