We at Insider Monkey have gone over 742 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Hasbro, Inc. (NASDAQ:HAS) based on that data.
Hasbro, Inc. (NASDAQ:HAS) has seen a decrease in enthusiasm from smart money lately. HAS was in 22 hedge funds’ portfolios at the end of September. There were 26 hedge funds in our database with HAS positions at the end of the previous quarter. At the end of this article we will also compare HAS to other stocks including Harris Corporation (NYSE:HRS), Fiat Chrysler Automobiles NV (NYSE:FCAU), and Macy’s, Inc. (NYSE:M) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
How have hedgies been trading Hasbro, Inc. (NASDAQ:HAS)?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 15% drop from the second quarter of 2016. After peaking at the end of Q1 with 30 hedge funds owning the stock, smart money ownership has retreated by 27% in the last 2 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Cliff Asness’ AQR Capital Management has the largest position in Hasbro, Inc. (NASDAQ:HAS), worth close to $100.6 million. The second most bullish fund manager is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $30.5 million position. Remaining hedge funds and institutional investors that are bullish comprise Tom Gayner’s Markel Gayner Asset Management, David Harding’s Winton Capital Management and Curtis Macnguyen’s Ivory Capital (Investment Mgmt).
Because Hasbro, Inc. (NASDAQ:HAS) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there exists a select few hedgies that decided to sell off their full holdings in the third quarter. At the top of the heap, Joel Greenblatt’s Gotham Asset Management sold off the biggest position of the 700 funds followed by Insider Monkey, valued at close to $16.6 million in stock. Louis Bacon’s fund, Moore Global Investments, also said goodbye to its stock, about $12.6 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 4 funds in the third quarter.
Let’s go over hedge fund activity in other stocks similar to Hasbro, Inc. (NASDAQ:HAS). These stocks are Harris Corporation (NYSE:HRS), Fiat Chrysler Automobiles NV (NYSE:FCAU), Macy’s, Inc. (NYSE:M), and Silver Wheaton Corp. (USA) (NYSE:SLW). All of these stocks’ market caps resemble HAS’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $760 million. That figure was $313 million in Hasbro’s case. Macy’s, Inc. (NYSE:M) is the most popular stock in this table. On the other hand Harris Corporation (NYSE:HRS) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Hasbro, Inc. (NASDAQ:HAS) is only as popular as HRS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.