Hedge Funds Are Cashing Out Of CBOE Global Markets Inc (CBOE)

We at Insider Monkey have gone over 866 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article, we look at what those funds think of CBOE Global Markets Inc (NASDAQ:CBOE) based on that data.

CBOE Global Markets Inc (NASDAQ:CBOE) has seen a decrease in enthusiasm from smart money lately. CBOE Global Markets Inc (NASDAQ:CBOE) was in 33 hedge funds’ portfolios at the end of March. The all time high for this statistic is 38. Our calculations also showed that CBOE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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

At first quarter’s end, a total of 33 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from one quarter earlier. On the other hand, there were a total of 38 hedge funds with a bullish position in CBOE a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in CBOE Global Markets Inc (NASDAQ:CBOE) was held by Renaissance Technologies, which reported holding $254.4 million worth of stock at the end of December. It was followed by D E Shaw with a $114.4 million position. Other investors bullish on the company included Hawk Ridge Management, AQR Capital Management, and Horizon Asset Management. In terms of the portfolio weights assigned to each position Truvvo Partners allocated the biggest weight to CBOE Global Markets Inc (NASDAQ:CBOE), around 10.67% of its 13F portfolio. Hawk Ridge Management is also relatively very bullish on the stock, setting aside 5.73 percent of its 13F equity portfolio to CBOE.

Due to the fact that CBOE Global Markets Inc (NASDAQ:CBOE) has experienced a decline in interest from the smart money, we can see that there were a few fund managers that elected to cut their full holdings in the first quarter. It’s worth mentioning that John Smith Clark’s Southpoint Capital Advisors dropped the biggest stake of all the hedgies followed by Insider Monkey, worth about $18.6 million in stock. William B. Gray’s fund, Orbis Investment Management, also sold off its stock, about $5.1 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 5 funds in the first quarter.

Let’s check out hedge fund activity in other stocks similar to CBOE Global Markets Inc (NASDAQ:CBOE). We will take a look at American Homes 4 Rent (NYSE:AMH), Cemex SAB de CV (NYSE:CX), Five9 Inc (NASDAQ:FIVN), Lithia Motors Inc (NYSE:LAD), East West Bancorp, Inc. (NASDAQ:EWBC), Bright Horizons Family Solutions Inc (NYSE:BFAM), and ICON Public Limited Company (NASDAQ:ICLR). All of these stocks’ market caps resemble CBOE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AMH 27 677079 0
CX 24 471444 2
FIVN 45 1641865 -2
LAD 40 2316536 1
EWBC 25 467070 1
BFAM 18 78337 -2
ICLR 29 731050 0
Average 29.7 911912 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 29.7 hedge funds with bullish positions and the average amount invested in these stocks was $912 million. That figure was $768 million in CBOE’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Bright Horizons Family Solutions Inc (NYSE:BFAM) is the least popular one with only 18 bullish hedge fund positions. CBOE Global Markets Inc (NASDAQ:CBOE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CBOE is 53.8. 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 22.8% in 2021 through July 2nd and still beat the market by 6 percentage points. Hedge funds were also right about betting on CBOE as the stock returned 19.6% since the end of Q1 (through 7/2) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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