The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 866 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Tripadvisor Inc (NASDAQ:TRIP).
Tripadvisor Inc (NASDAQ:TRIP) has experienced an increase in activity from the world’s largest hedge funds in recent months. Tripadvisor Inc (NASDAQ:TRIP) was in 45 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was 43. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that TRIP isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most market participants, hedge funds are seen as worthless, outdated financial tools of the past. While there are greater than 8000 funds in operation at present, We look at the bigwigs of this club, around 850 funds. These money managers administer bulk of the hedge fund industry’s total asset base, and by following their best stock picks, Insider Monkey has unsheathed various investment strategies that have historically outpaced the market. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Paul Reeder of PAR Capital Management
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation, which is why we are checking out this inflation play. We go through lists like 10 best gold stocks to buy to identify promising stocks. 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. With all of this in mind we’re going to view the latest hedge fund action regarding Tripadvisor Inc (NASDAQ:TRIP).
Do Hedge Funds Think TRIP Is A Good Stock To Buy Now?
At first quarter’s end, a total of 45 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. On the other hand, there were a total of 30 hedge funds with a bullish position in TRIP a year ago. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were adding to their stakes considerably (or already accumulated large positions).
More specifically, PAR Capital Management was the largest shareholder of Tripadvisor Inc (NASDAQ:TRIP), with a stake worth $622.5 million reported as of the end of March. Trailing PAR Capital Management was Whale Rock Capital Management, which amassed a stake valued at $312.8 million. Polar Capital, Arrowstreet Capital, and Honeycomb Asset 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 PAR Capital Management allocated the biggest weight to Tripadvisor Inc (NASDAQ:TRIP), around 14.43% of its 13F portfolio. Empirical Capital Partners is also relatively very bullish on the stock, designating 13.27 percent of its 13F equity portfolio to TRIP.
Now, key money managers have jumped into Tripadvisor Inc (NASDAQ:TRIP) headfirst. Shannon River Fund Management, managed by Spencer M. Waxman, created the most outsized position in Tripadvisor Inc (NASDAQ:TRIP). Shannon River Fund Management had $41.5 million invested in the company at the end of the quarter. Jack Woodruff’s Candlestick Capital Management also made a $37.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Jerry Kochanski’s Shelter Haven Capital Management, Bijan Modanlou, Joseph Bou-Saba, and Jayaveera Kodali’s Alta Park Capital, and Pasco Alfaro and Richard Turnure’s Miura Global Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Tripadvisor Inc (NASDAQ:TRIP) but similarly valued. We will take a look at Phillips 66 Partners LP (NYSE:PSXP), Proofpoint Inc (NASDAQ:PFPT), OneMain Holdings Inc (NYSE:OMF), Mobile TeleSystems OJSC (NYSE:MBT), Bumble Inc. (NASDAQ:BMBL), Digital Turbine Inc (NASDAQ:APPS), and Freshpet Inc (NASDAQ:FRPT). This group of stocks’ market values match TRIP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PSXP | 5 | 45200 | 1 |
| PFPT | 22 | 455170 | -4 |
| OMF | 43 | 886893 | 13 |
| MBT | 11 | 295926 | -2 |
| BMBL | 29 | 545734 | 29 |
| APPS | 22 | 348515 | -1 |
| FRPT | 19 | 209522 | -6 |
| Average | 21.6 | 398137 | 4.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.6 hedge funds with bullish positions and the average amount invested in these stocks was $398 million. That figure was $1976 million in TRIP’s case. OneMain Holdings Inc (NYSE:OMF) is the most popular stock in this table. On the other hand Phillips 66 Partners LP (NYSE:PSXP) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Tripadvisor Inc (NASDAQ:TRIP) is more popular among hedge funds. Our overall hedge fund sentiment score for TRIP is 89. 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 17.4% in 2021 through June 18th and still beat the market by 6.1 percentage points. Unfortunately TRIP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TRIP were disappointed as the stock returned -24.1% since the end of the first quarter (through 6/18) 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.
Follow Tripadvisor Inc. (NASDAQ:TRIP)
Follow Tripadvisor Inc. (NASDAQ:TRIP)
Suggested Articles:
- How to Best Use Insider Monkey To Increase Your Returns
- 15 Largest Animal Feed Companies
- Billionaire Lee Cooperman’s Top 10 Stocks
Disclosure: None. This article was originally published at Insider Monkey.
