Hedge Funds Are Coming Back To Wolverine World Wide, Inc. (WWW)

With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was Wolverine World Wide, Inc. (NYSE:WWW).

Wolverine World Wide, Inc. (NYSE:WWW) was in 21 hedge funds’ portfolios at the end of June. The all time high for this statistic is 23. WWW has seen an increase in enthusiasm from smart money of late. There were 16 hedge funds in our database with WWW positions at the end of the first quarter. Our calculations also showed that WWW isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

To most traders, hedge funds are viewed as unimportant, old financial vehicles of years past. While there are over 8000 funds trading today, Our researchers choose to focus on the aristocrats of this club, approximately 850 funds. These investment experts watch over the lion’s share of the smart money’s total asset base, and by following their unrivaled equity investments, Insider Monkey has unsheathed a number of investment strategies that have historically outperformed the market. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Fred DiSanto Ancora Advisors

Fred DiSanto of Ancora Advisors

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now we’re going to take a peek at the key hedge fund action surrounding Wolverine World Wide, Inc. (NYSE:WWW).

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

At Q2’s end, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 31% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in WWW over the last 24 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is WWW A Good Stock To Buy?

More specifically, 0 was the largest shareholder of Wolverine World Wide, Inc. (NYSE:WWW), with a stake worth $33.1 million reported as of the end of June. Trailing Diamond Hill Capital was Citadel Investment Group, which amassed a stake valued at $20.4 million. GLG Partners, Royce & Associates, and Ancora Advisors 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 Ancora Advisors allocated the biggest weight to Wolverine World Wide, Inc. (NYSE:WWW), around 0.42% of its 13F portfolio. Neo Ivy Capital is also relatively very bullish on the stock, setting aside 0.37 percent of its 13F equity portfolio to WWW.

As industrywide interest jumped, key money managers were leading the bulls’ herd. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the most valuable position in Wolverine World Wide, Inc. (NYSE:WWW). Marshall Wace LLP had $6.7 million invested in the company at the end of the quarter. Renaissance Technologies also made a $4.8 million investment in the stock during the quarter. The other funds with brand new WWW positions are Michael Gelband’s ExodusPoint Capital, Paul Tudor Jones’s Tudor Investment Corp, and Mika Toikka’s AlphaCrest Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Wolverine World Wide, Inc. (NYSE:WWW) but similarly valued. These stocks are Herman Miller, Inc. (NASDAQ:MLHR), Matson Inc. (NYSE:MATX), Cactus, Inc. (NYSE:WHD), United Community Banks Inc (NASDAQ:UCBI), Baozun Inc (NASDAQ:BZUN), PureCycle Technologies, Inc. (NASDAQ:PCT), and Butterfly Network, Inc. (NYSE:BFLY). This group of stocks’ market caps resemble WWW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MLHR 23 224828 5
MATX 14 30657 -5
WHD 14 109617 -6
UCBI 13 33685 2
BZUN 8 21760 -3
PCT 22 637995 1
BFLY 24 262864 -8
Average 16.9 188772 -2

View table here if you experience formatting issues.

As you can see these stocks had an average of 16.9 hedge funds with bullish positions and the average amount invested in these stocks was $189 million. That figure was $163 million in WWW’s case. Butterfly Network, Inc. (NYSE:BFLY) is the most popular stock in this table. On the other hand Baozun Inc (NASDAQ:BZUN) is the least popular one with only 8 bullish hedge fund positions. Wolverine World Wide, Inc. (NYSE:WWW) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for WWW is 78. 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 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately WWW wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on WWW were disappointed as the stock returned -3.4% since the end of June (through 10/22) 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.