Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is E2open Parent Holdings, Inc. (NYSE:ETWO), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
E2open Parent Holdings, Inc. (NYSE:ETWO) has experienced a decrease in hedge fund sentiment in recent months. E2open Parent Holdings, Inc. (NYSE:ETWO) was in 33 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 35. There were 35 hedge funds in our database with ETWO positions at the end of the second quarter. Our calculations also showed that ETWO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Ricky Sandler of Eminence Capital
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 glance at the key hedge fund action surrounding E2open Parent Holdings, Inc. (NYSE:ETWO).
Do Hedge Funds Think ETWO Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 33 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ETWO over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Paul Singer’s Elliott Investment Management has the largest position in E2open Parent Holdings, Inc. (NYSE:ETWO), worth close to $282.5 million, corresponding to 2% of its total 13F portfolio. The second largest stake is held by Windacre Partnership, led by Snehal Amin, holding a $282.1 million position; the fund has 6.3% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism encompass Ricky Sandler’s Eminence Capital, David Thomas’s Atalan Capital and Jerry Kochanski’s Shelter Haven Capital Management. In terms of the portfolio weights assigned to each position Shelter Haven Capital Management allocated the biggest weight to E2open Parent Holdings, Inc. (NYSE:ETWO), around 18.9% of its 13F portfolio. Altai Capital is also relatively very bullish on the stock, setting aside 13.23 percent of its 13F equity portfolio to ETWO.
Due to the fact that E2open Parent Holdings, Inc. (NYSE:ETWO) has witnessed a decline in interest from the aggregate hedge fund industry, it’s safe to say that there were a few hedge funds who sold off their entire stakes by the end of the third quarter. Intriguingly, Christian Leone’s Luxor Capital Group cut the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $77.2 million in call options. Jerry Kochanski’s fund, Shelter Haven Capital Management, also dropped its call options, about $25.6 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds by the end of the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as E2open Parent Holdings, Inc. (NYSE:ETWO) but similarly valued. We will take a look at Physicians Realty Trust (NYSE:DOC), Cornerstone OnDemand, Inc. (NASDAQ:CSOD), Yamana Gold Inc. (NYSE:AUY), Atlantica Sustainable Infrastructure plc (NASDAQ:AY), Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), Sabre Corporation (NASDAQ:SABR), and CONMED Corporation (NASDAQ:CNMD). This group of stocks’ market caps resemble ETWO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DOC | 17 | 67746 | 1 |
| CSOD | 35 | 879376 | 10 |
| AUY | 15 | 127105 | -1 |
| AY | 10 | 36501 | -4 |
| IOVA | 33 | 1439061 | 3 |
| SABR | 31 | 877609 | -6 |
| CNMD | 21 | 180491 | 0 |
| Average | 23.1 | 515413 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.1 hedge funds with bullish positions and the average amount invested in these stocks was $515 million. That figure was $1138 million in ETWO’s case. Cornerstone OnDemand, Inc. (NASDAQ:CSOD) is the most popular stock in this table. On the other hand Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is the least popular one with only 10 bullish hedge fund positions. E2open Parent Holdings, Inc. (NYSE:ETWO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ETWO is 77.3. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on ETWO as the stock returned 7.8% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow E2Open Parent Holdings Inc. (NYSE:ETWO)
Follow E2Open Parent Holdings Inc. (NYSE:ETWO)
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Disclosure: None. This article was originally published at Insider Monkey.
