The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded D8 Holdings Corp. (NYSE:DEH) based on those filings.
D8 Holdings Corp. (NYSE:DEH) has experienced an increase in hedge fund sentiment lately. D8 Holdings Corp. (NYSE:DEH) was in 27 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 25. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 25 hedge funds in our database with DEH holdings at the end of December. Our calculations also showed that DEH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Paul Glazer of Glazer Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery 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. Keeping this in mind we’re going to view the latest hedge fund action encompassing D8 Holdings Corp. (NYSE:DEH).
Do Hedge Funds Think DEH Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards DEH over the last 23 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Glazer Capital, managed by Paul Glazer, holds the most valuable position in D8 Holdings Corp. (NYSE:DEH). Glazer Capital has a $16.5 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Parvinder Thiara of Athanor Capital, with a $15.9 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism consist of Israel Englander’s Millennium Management, Alec Litowitz and Ross Laser’s Magnetar Capital and Paul Glazer’s Glazer Capital. In terms of the portfolio weights assigned to each position Maso Capital allocated the biggest weight to D8 Holdings Corp. (NYSE:DEH), around 1.15% of its 13F portfolio. Segantii Capital is also relatively very bullish on the stock, earmarking 0.43 percent of its 13F equity portfolio to DEH.
Now, specific money managers were leading the bulls’ herd. Athanor Capital, managed by Parvinder Thiara, established the most outsized position in D8 Holdings Corp. (NYSE:DEH). Athanor Capital had $15.9 million invested in the company at the end of the quarter. Robert Henry Lynch’s Aristeia Capital also made a $10.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Simon Sadler’s Segantii Capital, Parvinder Thiara’s Athanor Capital, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as D8 Holdings Corp. (NYSE:DEH) but similarly valued. These stocks are Star Group L.P. (NYSE:SGU), Global Indemnity Group LLC (NASDAQ:GBLI), Freeline Therapeutics Holdings plc (NASDAQ:FRLN), Verastem Inc (NASDAQ:VSTM), Genco Shipping & Trading Limited (NYSE:GNK), Metropolitan Bank Holding Corp. (NYSE:MCB), and Vishay Precision Group Inc (NYSE:VPG). This group of stocks’ market caps match DEH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SGU | 6 | 59966 | -4 |
| GBLI | 3 | 49773 | -3 |
| FRLN | 5 | 16505 | -1 |
| VSTM | 12 | 129712 | -3 |
| GNK | 22 | 121117 | 7 |
| MCB | 10 | 91521 | 2 |
| VPG | 15 | 87977 | 0 |
| Average | 10.4 | 79510 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.4 hedge funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $148 million in DEH’s case. Genco Shipping & Trading Limited (NYSE:GNK) is the most popular stock in this table. On the other hand Global Indemnity Group LLC (NASDAQ:GBLI) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks D8 Holdings Corp. (NYSE:DEH) is more popular among hedge funds. Our overall hedge fund sentiment score for DEH is 87. 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 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Unfortunately DEH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DEH were disappointed as the stock returned -0.3% since the end of the first quarter (through 7/9) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
