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 Interactive Brokers Group, Inc. (NASDAQ:IBKR).
Interactive Brokers Group, Inc. (NASDAQ:IBKR) was in 36 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 37. IBKR has seen an increase in hedge fund interest recently. There were 31 hedge funds in our database with IBKR holdings at the end of March. Our calculations also showed that IBKR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Do Hedge Funds Think IBKR Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 36 of the hedge funds tracked by Insider Monkey were long this stock, a change of 16% from the previous quarter. The graph below displays the number of hedge funds with bullish position in IBKR over the last 24 quarters. So, let’s review 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, Brian Bares’s Bares Capital Management has the biggest position in Interactive Brokers Group, Inc. (NASDAQ:IBKR), worth close to $335.1 million, accounting for 6% of its total 13F portfolio. Sitting at the No. 2 spot is Select Equity Group, led by Robert Joseph Caruso, holding a $283.4 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions consist of William von Mueffling’s Cantillon Capital Management, Quincy Lee’s Ancient Art (Teton Capital) and Paul Marshall and Ian Wace’s Marshall Wace LLP. In terms of the portfolio weights assigned to each position Ancient Art (Teton Capital) allocated the biggest weight to Interactive Brokers Group, Inc. (NASDAQ:IBKR), around 10.66% of its 13F portfolio. Owls Nest Partners is also relatively very bullish on the stock, dishing out 8.26 percent of its 13F equity portfolio to IBKR.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most valuable position in Interactive Brokers Group, Inc. (NASDAQ:IBKR). Balyasny Asset Management had $21.8 million invested in the company at the end of the quarter. Peter Seuss’s Prana Capital Management also made a $5.9 million investment in the stock during the quarter. The following funds were also among the new IBKR investors: Alec Litowitz and Ross Laser’s Magnetar Capital, Thomas Lee’s Lee Capital Management, and Ran Pang’s Quantamental Technologies.
Let’s also examine hedge fund activity in other stocks similar to Interactive Brokers Group, Inc. (NASDAQ:IBKR). These stocks are HubSpot Inc (NYSE:HUBS), Coca-Cola Europacific Partners PLC (NASDAQ:CCEP), Deutsche Bank Aktiengesellschaft (NYSE:DB), Laboratory Corp. of America Holdings (NYSE:LH), Hess Corporation (NYSE:HES), Tyson Foods, Inc. (NYSE:TSN), and Fifth Third Bancorp (NASDAQ:FITB). This group of stocks’ market caps match IBKR’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 37.6 hedge funds with bullish positions and the average amount invested in these stocks was $1444 million. That figure was $1482 million in IBKR’s case. HubSpot Inc (NYSE:HUBS) is the most popular stock in this table. On the other hand Deutsche Bank Aktiengesellschaft (NYSE:DB) is the least popular one with only 20 bullish hedge fund positions. Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for IBKR is 62.7. 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. A small number of hedge funds were also right about betting on IBKR as the stock returned 9.6% since the end of the second quarter (through 10/11) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.