We can judge whether ANGI Homeservices Inc. (NASDAQ:ANGI) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market when we factor in known risk factors.
ANGI Homeservices Inc. (NASDAQ:ANGI) was in 21 hedge funds’ portfolios at the end of the third quarter of 2019. ANGI has experienced an increase in hedge fund sentiment lately. There were 20 hedge funds in our database with ANGI positions at the end of the previous quarter. Our calculations also showed that ANGI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the 21st century investor’s toolkit there are a multitude of tools market participants use to analyze publicly traded companies. Some of the less utilized tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a significant margin (see the details here).
Christian Leone of Luxor Capital Group
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. Let’s go over the key hedge fund action encompassing ANGI Homeservices Inc. (NASDAQ:ANGI).
How have hedgies been trading ANGI Homeservices Inc. (NASDAQ:ANGI)?
Heading into the fourth quarter of 2019, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 5% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in ANGI over the last 17 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Luxor Capital Group held the most valuable stake in ANGI Homeservices Inc. (NASDAQ:ANGI), which was worth $87.4 million at the end of the third quarter. On the second spot was SQN Investors which amassed $51.9 million worth of shares. Echo Street Capital Management, Renaissance Technologies, and Marshall Wace 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 SQN Investors allocated the biggest weight to ANGI Homeservices Inc. (NASDAQ:ANGI), around 5.46% of its 13F portfolio. Luxor Capital Group is also relatively very bullish on the stock, setting aside 2.32 percent of its 13F equity portfolio to ANGI.
As aggregate interest increased, some big names were leading the bulls’ herd. Aristeia Capital, managed by Robert Henry Lynch, established the biggest position in ANGI Homeservices Inc. (NASDAQ:ANGI). Aristeia Capital had $11.9 million invested in the company at the end of the quarter. Joshua Nash’s Ulysses Management also made a $10.4 million investment in the stock during the quarter. The other funds with brand new ANGI positions are Brad Gerstner’s Altimeter Capital Management, Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management, and Steve Cohen’s Point72 Asset Management.
Let’s now review hedge fund activity in other stocks similar to ANGI Homeservices Inc. (NASDAQ:ANGI). These stocks are Murphy Oil Corporation (NYSE:MUR), New Relic Inc (NYSE:NEWR), Two Harbors Investment Corp (NYSE:TWO), and LHC Group, Inc. (NASDAQ:LHCG). This group of stocks’ market valuations match ANGI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MUR | 17 | 143553 | -1 |
| NEWR | 35 | 518778 | 6 |
| TWO | 13 | 64248 | 0 |
| LHCG | 27 | 112140 | 1 |
| Average | 23 | 209680 | 1.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $210 million. That figure was $261 million in ANGI’s case. New Relic Inc (NYSE:NEWR) is the most popular stock in this table. On the other hand Two Harbors Investment Corp (NYSE:TWO) is the least popular one with only 13 bullish hedge fund positions. ANGI Homeservices Inc. (NASDAQ:ANGI) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. A small number of hedge funds were also right about betting on ANGI, though not to the same extent, as the stock returned 9.3% during the first two months of the fourth quarter and outperformed the market.
Disclosure: None. This article was originally published at Insider Monkey.
