Hedge Funds Are Betting On Malibu Boats Inc (MBUU)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Malibu Boats Inc (NASDAQ:MBUU).

Malibu Boats Inc (NASDAQ:MBUU) investors should pay attention to an increase in hedge fund sentiment lately. Malibu Boats Inc (NASDAQ:MBUU) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 22. Our calculations also showed that MBUU isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

Richard Driehaus of Driehaus 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. Keeping this in mind let’s take a look at the recent hedge fund action surrounding Malibu Boats Inc (NASDAQ:MBUU).

Do Hedge Funds Think MBUU Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 40% from the second quarter of 2021. On the other hand, there were a total of 19 hedge funds with a bullish position in MBUU a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

Is MBUU A Good Stock To Buy?

More specifically, Renaissance Technologies was the largest shareholder of Malibu Boats Inc (NASDAQ:MBUU), with a stake worth $24.9 million reported as of the end of September. Trailing Renaissance Technologies was Shellback Capital, which amassed a stake valued at $22.4 million. Ararat Capital, Arrowstreet Capital, and Royce & Associates were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Ararat Capital allocated the biggest weight to Malibu Boats Inc (NASDAQ:MBUU), around 6.4% of its 13F portfolio. ACK Asset Management is also relatively very bullish on the stock, dishing out 2.94 percent of its 13F equity portfolio to MBUU.

Consequently, specific money managers have jumped into Malibu Boats Inc (NASDAQ:MBUU) headfirst. ACK Asset Management, managed by Richard S. Meisenberg, established the most valuable position in Malibu Boats Inc (NASDAQ:MBUU). ACK Asset Management had $10.1 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $4 million investment in the stock during the quarter. The following funds were also among the new MBUU investors: Steven Baughman’s Divisar Capital, Peter Muller’s PDT Partners, and Mika Toikka’s AlphaCrest Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Malibu Boats Inc (NASDAQ:MBUU) but similarly valued. We will take a look at Redwood Trust, Inc. (NYSE:RWT), Hyliion Holdings Corp. (NYSE:HYLN), The Bancorp, Inc. (NASDAQ:TBBK), Nano Dimension Ltd. (NASDAQ:NNDM), Sapiens International Corporation N.V. (NASDAQ:SPNS), GoPro Inc (NASDAQ:GPRO), and Omega Flex, Inc. (NASDAQ:OFLX). All of these stocks’ market caps match MBUU’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RWT 15 72958 3
HYLN 8 15080 3
TBBK 14 43813 -2
NNDM 10 112880 -1
SPNS 10 35400 1
GPRO 31 293185 3
OFLX 3 4517 0
Average 13 82548 1

View table here if you experience formatting issues.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $126 million in MBUU’s case. GoPro Inc (NASDAQ:GPRO) is the most popular stock in this table. On the other hand Omega Flex, Inc. (NASDAQ:OFLX) is the least popular one with only 3 bullish hedge fund positions. Malibu Boats Inc (NASDAQ:MBUU) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MBUU is 70.8. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately MBUU wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MBUU were disappointed as the stock returned -1.8% since the end of September (through 12/31) 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 many of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.