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 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider New Oriental Education & Technology Group Inc. (NYSE:EDU) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
New Oriental Education & Technology Group Inc. (NYSE:EDU) investors should pay attention to a decrease in support from the world’s most elite money managers recently. New Oriental Education & Technology Group Inc. (NYSE:EDU) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic is 50. Our calculations also showed that EDU isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
David Siegel of Two Sigma Advisors
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 view the fresh hedge fund action encompassing New Oriental Education & Technology Group Inc. (NYSE:EDU).
Do Hedge Funds Think EDU Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 32 of the hedge funds tracked by Insider Monkey were long this stock, a change of -18% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards EDU over the last 25 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
The largest stake in New Oriental Education & Technology Group Inc. (NYSE:EDU) was held by Yiheng Capital, which reported holding $80.8 million worth of stock at the end of September. It was followed by Two Sigma Advisors with a $49.5 million position. Other investors bullish on the company included Millennium Management, Alkeon Capital Management, and Keywise Capital Management. In terms of the portfolio weights assigned to each position Keywise Capital Management allocated the biggest weight to New Oriental Education & Technology Group Inc. (NYSE:EDU), around 18.86% of its 13F portfolio. IvyRock Asset Management is also relatively very bullish on the stock, setting aside 10.45 percent of its 13F equity portfolio to EDU.
Judging by the fact that New Oriental Education & Technology Group Inc. (NYSE:EDU) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there were a few funds who were dropping their positions entirely by the end of the third quarter. Interestingly, Dennis Puri and Oliver Keller’s Hunt Lane Capital said goodbye to the largest stake of the 750 funds monitored by Insider Monkey, valued at about $65.5 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund dropped about $45 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 7 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as New Oriental Education & Technology Group Inc. (NYSE:EDU) but similarly valued. We will take a look at Applied Industrial Technologies Inc (NYSE:AIT), The Beauty Health Company (NASDAQ:SKIN), Parsons Corporation (NYSE:PSN), PotlatchDeltic Corporation (NASDAQ:PCH), Copa Holdings, S.A. (NYSE:CPA), CommVault Systems, Inc. (NASDAQ:CVLT), and 3D Systems Corporation (NYSE:DDD). This group of stocks’ market values match EDU’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AIT | 17 | 85253 | -1 |
| SKIN | 39 | 865397 | 6 |
| PSN | 8 | 30497 | -1 |
| PCH | 22 | 85997 | -6 |
| CPA | 16 | 229501 | 2 |
| CVLT | 19 | 588850 | -9 |
| DDD | 18 | 284758 | -2 |
| Average | 19.9 | 310036 | -1.6 |
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 $310 million. That figure was $390 million in EDU’s case. The Beauty Health Company (NASDAQ:SKIN) is the most popular stock in this table. On the other hand Parsons Corporation (NYSE:PSN) is the least popular one with only 8 bullish hedge fund positions. New Oriental Education & Technology Group Inc. (NYSE:EDU) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EDU is 55.9. 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 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 EDU 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 New Oriental Education & Technology Group Inc. (NYSE:EDU)
Follow New Oriental Education & Technology Group Inc. (NYSE:EDU)
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Disclosure: None. This article was originally published at Insider Monkey.
