We at Insider Monkey have gone over 867 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 The Procter & Gamble Company (NYSE:PG) based on that data.
The Procter & Gamble Company (NYSE:PG) investors should pay attention to an increase in hedge fund interest recently. The Procter & Gamble Company (NYSE:PG) was in 69 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 83. Our calculations also showed that PG 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. Keeping this in mind let’s check out the key hedge fund action regarding The Procter & Gamble Company (NYSE:PG).
Ray Dalio of Bridgewater Associates
Do Hedge Funds Think PG Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 69 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 1% from one quarter earlier. On the other hand, there were a total of 75 hedge funds with a bullish position in PG a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
The largest stake in The Procter & Gamble Company (NYSE:PG) was held by Cedar Rock Capital, which reported holding $1035.9 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $753.2 million position. Other investors bullish on the company included Trian Partners, Citadel Investment Group, and Bridgewater Associates. In terms of the portfolio weights assigned to each position Cedar Rock Capital allocated the biggest weight to The Procter & Gamble Company (NYSE:PG), around 24.83% of its 13F portfolio. Trian Partners is also relatively very bullish on the stock, setting aside 9.16 percent of its 13F equity portfolio to PG.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Holocene Advisors, managed by Brandon Haley, assembled the most outsized position in The Procter & Gamble Company (NYSE:PG). Holocene Advisors had $97.6 million invested in the company at the end of the quarter. Jack Woodruff’s Candlestick Capital Management also initiated a $36.3 million position during the quarter. The other funds with brand new PG positions are Louis Bacon’s Moore Global Investments, Michael Rockefeller and KarláKroeker’s Woodline Partners, and Brian Scudieri’s Kehrs Ridge Capital.
Let’s now review hedge fund activity in other stocks similar to The Procter & Gamble Company (NYSE:PG). We will take a look at ASML Holding N.V. (NASDAQ:ASML), The Walt Disney Company (NYSE:DIS), Paypal Holdings Inc (NASDAQ:PYPL), Adobe Inc. (NASDAQ:ADBE), Netflix, Inc. (NASDAQ:NFLX), salesforce.com, inc. (NYSE:CRM), and Comcast Corporation (NASDAQ:CMCSA). This group of stocks’ market caps are similar to PG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ASML | 41 | 4858031 | -3 |
| DIS | 101 | 9416047 | -11 |
| PYPL | 123 | 12880990 | -20 |
| ADBE | 95 | 12682168 | 6 |
| NFLX | 106 | 14759355 | -7 |
| CRM | 119 | 14900848 | 11 |
| CMCSA | 75 | 8547154 | -9 |
| Average | 94.3 | 11149228 | -4.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 94.3 hedge funds with bullish positions and the average amount invested in these stocks was $11149 million. That figure was $6414 million in PG’s case. Paypal Holdings Inc (NASDAQ:PYPL) is the most popular stock in this table. On the other hand ASML Holding N.V. (NASDAQ:ASML) is the least popular one with only 41 bullish hedge fund positions. The Procter & Gamble Company (NYSE:PG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for PG is 48. 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 negative signal and 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 surpassed the market again by 5.6 percentage points. Unfortunately PG wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); PG investors were disappointed as the stock returned 4.1% 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 most of these stocks already outperformed the market in 2021.
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Disclosure: None. This article was originally published at Insider Monkey.
