We at Insider Monkey have gone over 700 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 investors think of GreenSky, Inc. (NASDAQ:GSKY).
GreenSky, Inc. (NASDAQ:GSKY) shareholders have witnessed a decrease in support from the world’s most elite money managers of late. GSKY was in 20 hedge funds’ portfolios at the end of the third quarter of 2018. There were 25 hedge funds in our database with GSKY positions at the end of the previous quarter. Our calculations also showed that gsky isn’t among the 30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We’re going to take a gander at the recent hedge fund action surrounding GreenSky, Inc. (NASDAQ:GSKY).
What have hedge funds been doing with GreenSky, Inc. (NASDAQ:GSKY)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in GSKY over the last 13 quarters. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Among these funds, Partner Fund Management held the most valuable stake in GreenSky, Inc. (NASDAQ:GSKY), which was worth $36.7 million at the end of the third quarter. On the second spot was Marshall Wace LLP which amassed $34.2 million worth of shares. Moreover, Citadel Investment Group, Samlyn Capital, and Shannon River Fund Management were also bullish on GreenSky, Inc. (NASDAQ:GSKY), allocating a large percentage of their portfolios to this stock.
Since GreenSky, Inc. (NASDAQ:GSKY) has experienced declining sentiment from the smart money, it’s easy to see that there exists a select few funds that slashed their full holdings in the third quarter. Interestingly, Steve Cohen’s Point72 Asset Management said goodbye to the biggest stake of all the hedgies watched by Insider Monkey, comprising close to $11.8 million in stock. Shane Finemore’s fund, Manikay Partners, also dumped its stock, about $4.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds in the third quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as GreenSky, Inc. (NASDAQ:GSKY) but similarly valued. We will take a look at Merit Medical Systems, Inc. (NASDAQ:MMSI), Simpson Manufacturing Co, Inc. (NYSE:SSD), SYNNEX Corporation (NYSE:SNX), and NCR Corporation (NYSE:NCR). This group of stocks’ market values are similar to GSKY’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MMSI | 12 | 278333 | 0 |
| SSD | 17 | 235777 | 2 |
| SNX | 17 | 205450 | 4 |
| NCR | 17 | 123213 | 1 |
| Average | 15.75 | 210693 | 1.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $211 million. That figure was $187 million in GSKY’s case. Simpson Manufacturing Co, Inc. (NYSE:SSD) is the most popular stock in this table. On the other hand Merit Medical Systems, Inc. (NASDAQ:MMSI) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks GreenSky, Inc. (NASDAQ:GSKY) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None. This article was originally published at Insider Monkey.
