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Hedge Funds Are Selling Repay Holdings Corporation (RPAY)

We at Insider Monkey have gone over 752 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 September 30th. In this article, we look at what those funds think of Repay Holdings Corporation (NASDAQ:RPAY) based on that data.

Repay Holdings Corporation (NASDAQ:RPAY) has seen a decrease in support from the world’s most elite money managers of late. RPAY was in 9 hedge funds’ portfolios at the end of September. There were 12 hedge funds in our database with RPAY positions at the end of the previous quarter. Our calculations also showed that RPAY isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

To most shareholders, hedge funds are seen as worthless, outdated financial vehicles of the past. While there are over 8000 funds trading at the moment, Our experts look at the masters of this group, approximately 750 funds. It is estimated that this group of investors handle bulk of the smart money’s total capital, and by following their highest performing stock picks, Insider Monkey has uncovered several investment strategies that have historically outstripped the broader indices. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points annually since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .

Richard Driehaus of Driehaus Capital

We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds‘ buy/sell signals. Let’s take a peek at the key hedge fund action surrounding Repay Holdings Corporation (NASDAQ:RPAY).

Hedge fund activity in Repay Holdings Corporation (NASDAQ:RPAY)

At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -25% from one quarter earlier. By comparison, 8 hedge funds held shares or bullish call options in RPAY a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is RPAY A Good Stock To Buy?

Of the funds tracked by Insider Monkey, Jeffrey Hoffner’s Engle Capital has the biggest position in Repay Holdings Corporation (NASDAQ:RPAY), worth close to $13.9 million, amounting to 3.7% of its total 13F portfolio. The second largest stake is held by Strycker View Capital, managed by Usman Waheed, which holds a $12.2 million position; 4.8% of its 13F portfolio is allocated to the stock. Some other professional money managers that hold long positions encompass Richard Driehaus’s Driehaus Capital, Josh Goldberg’s G2 Investment Partners Management and Steve Cohen’s Point72 Asset Management. In terms of the portfolio weights assigned to each position Strycker View Capital allocated the biggest weight to Repay Holdings Corporation (NASDAQ:RPAY), around 4.85% of its 13F portfolio. Engle Capital is also relatively very bullish on the stock, earmarking 3.68 percent of its 13F equity portfolio to RPAY.

Due to the fact that Repay Holdings Corporation (NASDAQ:RPAY) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedge funds who sold off their entire stakes in the third quarter. It’s worth mentioning that Sander Gerber’s Hudson Bay Capital Management dumped the largest position of the “upper crust” of funds watched by Insider Monkey, comprising about $7.3 million in stock. Highbridge Capital Management, also cut its stock, about $7.2 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Repay Holdings Corporation (NASDAQ:RPAY) but similarly valued. We will take a look at Catchmark Timber Trust Inc (NYSE:CTT), FutureFuel Corp. (NYSE:FF), Ituran Location and Control Ltd. (US) (NASDAQ:ITRN), and International Money Express, Inc. (NASDAQ:IMXI). This group of stocks’ market values are closest to RPAY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CTT 11 63571 2
FF 10 45499 -1
ITRN 11 95048 -2
IMXI 14 96639 2
Average 11.5 75189 0.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $61 million in RPAY’s case. International Money Express, Inc. (NASDAQ:IMXI) is the most popular stock in this table. On the other hand FutureFuel Corp. (NYSE:FF) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Repay Holdings Corporation (NASDAQ:RPAY) is even less popular than FF. Hedge funds dodged a bullet by taking a bearish stance towards RPAY. Our calculations showed that the top 20 most popular hedge fund stocks returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately RPAY wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); RPAY investors were disappointed as the stock returned 3.8% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 70 percent of these stocks already outperformed the market so far in Q4.

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

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