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 873 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 June 30th. In this article we look at what those investors think of DoorDash, Inc. (NYSE:DASH).
Is DoorDash, Inc. (NYSE:DASH) a buy right now? Hedge funds were betting on the stock. The number of bullish hedge fund positions went up by 7 in recent months. DoorDash, Inc. (NYSE:DASH) was in 45 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic was previously 38. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that DASH isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 38 hedge funds in our database with DASH positions at the end of the first quarter.
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Alex Sacerdote of Whale Rock Capital Management
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Do Hedge Funds Think DASH Is A Good Stock To Buy Now?
At second quarter’s end, a total of 45 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 18% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in DASH over the last 24 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in DoorDash, Inc. (NYSE:DASH) was held by Tiger Global Management LLC, which reported holding $1946.2 million worth of stock at the end of June. It was followed by Coatue Management with a $1722.5 million position. Other investors bullish on the company included Lone Pine Capital, SCGE Management, and Whale Rock Capital Management. In terms of the portfolio weights assigned to each position Himension Capital allocated the biggest weight to DoorDash, Inc. (NYSE:DASH), around 19.85% of its 13F portfolio. Darsana Capital Partners is also relatively very bullish on the stock, earmarking 9.38 percent of its 13F equity portfolio to DASH.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Melvin Capital Management, managed by Gabriel Plotkin, assembled the most outsized position in DoorDash, Inc. (NYSE:DASH). Melvin Capital Management had $329.9 million invested in the company at the end of the quarter. Josh Resnick’s Jericho Capital Asset Management also initiated a $279.4 million position during the quarter. The other funds with brand new DASH positions are Brandon Haley’s Holocene Advisors, Steve Cohen’s Point72 Asset Management, and Mark Wolfson and Jamie Alexander’s Jasper Ridge Partners.
Let’s also examine hedge fund activity in other stocks similar to DoorDash, Inc. (NYSE:DASH). These stocks are Emerson Electric Co. (NYSE:EMR), The Progressive Corporation (NYSE:PGR), Humana Inc (NYSE:HUM), KE Holdings Inc (NYSE:BEKE), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), NXP Semiconductors NV (NASDAQ:NXPI), and Honda Motor Co Ltd (NYSE:HMC). All of these stocks’ market caps are closest to DASH’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EMR | 45 | 854279 | 0 |
| PGR | 44 | 1338423 | -1 |
| HUM | 59 | 3257015 | 6 |
| BEKE | 31 | 2712876 | -2 |
| CRWD | 66 | 7266652 | -11 |
| NXPI | 52 | 1336949 | -1 |
| HMC | 10 | 374945 | -2 |
| Average | 43.9 | 2448734 | -1.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 43.9 hedge funds with bullish positions and the average amount invested in these stocks was $2449 million. That figure was $8924 million in DASH’s case. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is the most popular stock in this table. On the other hand Honda Motor Co Ltd (NYSE:HMC) is the least popular one with only 10 bullish hedge fund positions. DoorDash, Inc. (NYSE:DASH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DASH is 71.3. 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 22.9% in 2021 through October 1st and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on DASH as the stock returned 14.4% since the end of Q2 (through 10/1) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
