Here is What Hedge Funds Think About GoodRx Holdings, Inc. (GDRX)

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 have processed the filings of the more than 873 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their June 30th holdings, data that is available nowhere else. Should you consider GoodRx Holdings, Inc. (NASDAQ:GDRX) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

GoodRx Holdings, Inc. (NASDAQ:GDRX) investors should be aware of an increase in support from the world’s most elite money managers in recent months. GoodRx Holdings, Inc. (NASDAQ:GDRX) was in 28 hedge funds’ portfolios at the end of June. The all time high for this statistic is 41. Our calculations also showed that GDRX isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

At the moment there are plenty of indicators investors employ to appraise their holdings. Two of the most useful indicators are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the top fund managers can outpace the market by a solid margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. 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 take a glance at the fresh hedge fund action surrounding GoodRx Holdings, Inc. (NASDAQ:GDRX).

Do Hedge Funds Think GDRX Is A Good Stock To Buy Now?

Heading into the third quarter of 2021, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 17% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in GDRX a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Silver Lake Partners held the most valuable stake in GoodRx Holdings, Inc. (NASDAQ:GDRX), which was worth $127.2 million at the end of the second quarter. On the second spot was Atreides Management which amassed $123.6 million worth of shares. Tiger Global Management LLC, Zevenbergen Capital Investments, and Light Street Capital 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 Rip Road Capital allocated the biggest weight to GoodRx Holdings, Inc. (NASDAQ:GDRX), around 7.46% of its 13F portfolio. Light Street Capital is also relatively very bullish on the stock, designating 2.24 percent of its 13F equity portfolio to GDRX.

As industrywide interest jumped, key hedge funds have been driving this bullishness. Atreides Management, managed by Gavin Baker, established the biggest position in GoodRx Holdings, Inc. (NASDAQ:GDRX). Atreides Management had $123.6 million invested in the company at the end of the quarter. Ray Dalio’s Bridgewater Associates also initiated a $25.6 million position during the quarter. The other funds with brand new GDRX positions are Christian Leone’s Luxor Capital Group, Joseph Samuels’s Islet Management, and Daniel S. Och’s OZ Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as GoodRx Holdings, Inc. (NASDAQ:GDRX) but similarly valued. These stocks are Wynn Resorts, Limited (NASDAQ:WYNN), ABIOMED, Inc. (NASDAQ:ABMD), Oak Street Health, Inc. (NYSE:OSH), Aluminum Corp. of China Limited (NYSE:ACH), The J.M. Smucker Company (NYSE:SJM), Continental Resources, Inc. (NYSE:CLR), and Alliant Energy Corporation (NYSE:LNT). This group of stocks’ market valuations match GDRX’s market valuation.

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As you can see these stocks had an average of 24.4 hedge funds with bullish positions and the average amount invested in these stocks was $429 million. That figure was $636 million in GDRX’s case. Wynn Resorts, Limited (NASDAQ:WYNN) is the most popular stock in this table. On the other hand Aluminum Corp. of China Limited (NYSE:ACH) is the least popular one with only 4 bullish hedge fund positions. GoodRx Holdings, Inc. (NASDAQ:GDRX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GDRX is 65.9. 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Hedge funds were also right about betting on GDRX as the stock returned 17.8% since the end of Q2 (through 10/15) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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

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