A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on GreenSky, Inc. (NASDAQ:GSKY).
GreenSky, Inc. (NASDAQ:GSKY) has experienced an increase in hedge fund interest lately. GreenSky, Inc. (NASDAQ:GSKY) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic is 25. There were 14 hedge funds in our database with GSKY holdings at the end of June. Our calculations also showed that GSKY isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Matthew Halbower of Pentwater Capital
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. Now let’s check out the latest hedge fund action regarding GreenSky, Inc. (NASDAQ:GSKY).
Do Hedge Funds Think GSKY Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 71% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in GSKY over the last 25 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
The largest stake in GreenSky, Inc. (NASDAQ:GSKY) was held by Millennium Management, which reported holding $32.9 million worth of stock at the end of September. It was followed by Pentwater Capital Management with a $27.1 million position. Other investors bullish on the company included Water Island Capital, Berry Street Capital, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Berry Street Capital allocated the biggest weight to GreenSky, Inc. (NASDAQ:GSKY), around 2.45% of its 13F portfolio. Water Island Capital is also relatively very bullish on the stock, designating 1.42 percent of its 13F equity portfolio to GSKY.
As one would reasonably expect, specific money managers were leading the bulls’ herd. Pentwater Capital Management, managed by Matthew Halbower, assembled the largest position in GreenSky, Inc. (NASDAQ:GSKY). Pentwater Capital Management had $27.1 million invested in the company at the end of the quarter. John Orrico’s Water Island Capital also initiated a $24.7 million position during the quarter. The other funds with brand new GSKY positions are Orkun Kilic’s Berry Street Capital, Clint Carlson’s Carlson Capital, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s check out hedge fund activity in other stocks similar to GreenSky, Inc. (NASDAQ:GSKY). These stocks are Ready Capital Corporation (NYSE:RC), Missfresh Limited (NASDAQ:MF), The Andersons, Inc. (NASDAQ:ANDE), German American Bancorp., Inc. (NASDAQ:GABC), TMC the metals company Inc. (NASDAQ:TMC), Apartment Investment and Management Co. (NYSE:AIV), and Summit Hotel Properties Inc (NYSE:INN). All of these stocks’ market caps are closest to GSKY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RC | 13 | 45783 | 2 |
| MF | 2 | 9445 | -5 |
| ANDE | 14 | 21179 | 0 |
| GABC | 10 | 12531 | 1 |
| TMC | 16 | 12354 | 16 |
| AIV | 12 | 154861 | -3 |
| INN | 11 | 24185 | -2 |
| Average | 11.1 | 40048 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.1 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $184 million in GSKY’s case. TMC the metals company Inc. (NASDAQ:TMC) is the most popular stock in this table. On the other hand Missfresh Limited (NASDAQ:MF) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks GreenSky, Inc. (NASDAQ:GSKY) is more popular among hedge funds. Our overall hedge fund sentiment score for GSKY is 88.8. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately GSKY wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GSKY were disappointed as the stock returned 6.3% since the end of the third quarter (through 12/9) 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.
