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 867 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 September 30th. Hedge funds’ consensus stock picks performed spectacularly over the last 3 years, but 2022 hasn’t been kind to hedge funds. In this article we look at how hedge funds traded Boyd Gaming Corporation (NYSE:BYD) and determine whether the smart money was really smart about this stock.
Boyd Gaming Corporation (NYSE:BYD) shareholders have witnessed an increase in support from the world’s most elite money managers recently. Boyd Gaming Corporation (NYSE:BYD) was in 37 hedge funds’ portfolios at the end of September. 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. There were 36 hedge funds in our database with BYD holdings at the end of June. Our calculations also showed that BYD isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Mario Gabelli of GAMCO Investors
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. With all of this in mind we’re going to take a gander at the key hedge fund action encompassing Boyd Gaming Corporation (NYSE:BYD).
Do Hedge Funds Think BYD Is A Good Stock To Buy Now?
At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 3% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in BYD over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, HG Vora Capital Management, managed by Parag Vora, holds the largest position in Boyd Gaming Corporation (NYSE:BYD). HG Vora Capital Management has a $259.4 million position in the stock, comprising 9.8% of its 13F portfolio. On HG Vora Capital Management’s heels is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding a $93.8 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism contain Mario Gabelli’s GAMCO Investors, Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors and Cliff Asness’s AQR Capital Management. 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, earmarking 5.03 percent of its 13F equity portfolio to BYD.
As one would reasonably expect, some big names were breaking ground themselves. Canyon Capital Advisors, managed by Joshua Friedman and Mitchell Julis, established the most outsized 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 made a $26.3 million investment in the stock during the quarter. The following funds were also among the new BYD investors: Eduardo Abush’s Waterfront Capital Partners, Paul Marshall and Ian Wace’s Marshall Wace LLP, and John W. Rogers’s Ariel Investments.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Boyd Gaming Corporation (NYSE:BYD) but similarly valued. These stocks are 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). All of these stocks’ market caps match 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 29.6% in 2021 and beat the market again by 3.6 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 -6% since the end of September (through 1/31) 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 all 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.
