Is Boyd Gaming Corporation (NYSE:BYD) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Boyd Gaming Corporation (NYSE:BYD) has experienced an increase in enthusiasm from smart money of late. Boyd Gaming Corporation (NYSE:BYD) was in 37 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 36. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that BYD isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. Now let’s take a look at the fresh hedge fund action surrounding Boyd Gaming Corporation (NYSE:BYD).
Joshua Friedman of Canyon Capital Advisors
Do Hedge Funds Think BYD Is A Good Stock To Buy Now?
At third quarter’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards BYD over the last 25 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
Among these funds, HG Vora Capital Management held the most valuable stake in Boyd Gaming Corporation (NYSE:BYD), which was worth $259.4 million at the end of the third quarter. On the second spot was Arrowstreet Capital which amassed $93.8 million worth of shares. GAMCO Investors, Canyon Capital Advisors, and AQR Capital Management 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 HG Vora Capital Management allocated the biggest weight to Boyd Gaming Corporation (NYSE:BYD), around 9.83% of its 13F portfolio. Land & Buildings Investment Management is also relatively very bullish on the stock, setting aside 5.03 percent of its 13F equity portfolio to BYD.
As one would reasonably expect, some big names have been driving this bullishness. Canyon Capital Advisors, managed by Joshua Friedman and Mitchell Julis, created the biggest position in Boyd Gaming Corporation (NYSE:BYD). Canyon Capital Advisors had $53.1 million invested in the company at the end of the quarter. Jeffrey Gates’s Gates Capital Management also initiated a $26.3 million position during the quarter. The other funds with brand new BYD positions are Eduardo Abush’s Waterfront Capital Partners, Paul Marshall and Ian Wace’s Marshall Wace LLP, and John W. Rogers’s Ariel Investments.
Let’s now take a look at hedge fund activity in other stocks similar to Boyd Gaming Corporation (NYSE:BYD). We will take a look at Kohl’s Corporation (NYSE:KSS), Pilgrim’s Pride Corporation (NASDAQ:PPC), Old Republic International Corporation (NYSE:ORI), Starwood Property Trust, Inc. (NYSE:STWD), PLDT Inc. (NYSE:PHI), Choice Hotels International, Inc. (NYSE:CHH), and Synaptics Incorporated (NASDAQ:SYNA). This group of stocks’ market caps resemble BYD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KSS | 37 | 951330 | -3 |
| PPC | 25 | 254968 | 7 |
| ORI | 20 | 357593 | -6 |
| STWD | 12 | 161117 | 1 |
| PHI | 5 | 104426 | 0 |
| CHH | 17 | 151994 | 2 |
| SYNA | 23 | 493437 | -4 |
| Average | 19.9 | 353552 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.9 hedge funds with bullish positions and the average amount invested in these stocks was $354 million. That figure was $779 million in BYD’s case. Kohl’s Corporation (NYSE:KSS) is the most popular stock in this table. On the other hand PLDT Inc. (NYSE:PHI) is the least popular one with only 5 bullish hedge fund positions. Boyd Gaming Corporation (NYSE:BYD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BYD is 86. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately BYD wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BYD were disappointed as the stock returned -7.4% since the end of September (through 11/30) 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.
Follow Boyd Gaming Corp (NYSE:BYD)
Follow Boyd Gaming Corp (NYSE:BYD)
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Disclosure: None. This article was originally published at Insider Monkey.
