Where Do Hedge Funds Stand On OneSmart International Education Group Limited (ONE)?

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 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider OneSmart International Education Group Limited (NYSE:ONE) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

OneSmart International Education Group Limited (NYSE:ONE) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 27 hedge funds’ portfolios at the end of March. Our calculations also showed that ONE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA), LifeMD, Inc. (NASDAQ:LFMD), and Cue Biopharma, Inc. (NASDAQ:CUE) to gather more data points.

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Bill Miller

Bill Miller of Miller Value Partners

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Do Hedge Funds Think ONE Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from one quarter earlier. By comparison, 7 hedge funds held shares or bullish call options in ONE a year ago. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).

Among these funds, ARK Investment Management held the most valuable stake in OneSmart International Education Group Limited (NYSE:ONE), which was worth $24.4 million at the end of the fourth quarter. On the second spot was Yiheng Capital which amassed $17.2 million worth of shares. Rima Senvest Management, DSAM Partners, and Millennium Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position DSAM Partners allocated the biggest weight to OneSmart International Education Group Limited (NYSE:ONE), around 2.24% of its 13F portfolio. Yiheng Capital is also relatively very bullish on the stock, setting aside 0.78 percent of its 13F equity portfolio to ONE.

Since OneSmart International Education Group Limited (NYSE:ONE) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedgies that elected to cut their full holdings last quarter. It’s worth mentioning that Jeffrey Talpins’s Element Capital Management sold off the biggest position of all the hedgies monitored by Insider Monkey, comprising close to $10.8 million in stock. Sander Gerber’s fund, Hudson Bay Capital Management, also cut its stock, about $10.5 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as OneSmart International Education Group Limited (NYSE:ONE) but similarly valued. We will take a look at Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA), LifeMD, Inc. (NASDAQ:LFMD), Cue Biopharma, Inc. (NASDAQ:CUE), Quotient Limited (NASDAQ:QTNT), BlueLinx Holdings Inc. (NYSE:BXC), Source Capital, Inc. (NYSE:SOR), and Oil States International, Inc. (NYSE:OIS). This group of stocks’ market values are similar to ONE’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IEA 13 127502 4
LFMD 6 15890 4
CUE 14 106499 -5
QTNT 10 130221 -7
BXC 19 108641 2
SOR 2 45352 -1
OIS 17 17933 4
Average 11.6 78863 0.1

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.6 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $112 million in ONE’s case. BlueLinx Holdings Inc. (NYSE:BXC) is the most popular stock in this table. On the other hand Source Capital, Inc. (NYSE:SOR) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks OneSmart International Education Group Limited (NYSE:ONE) is more popular among hedge funds. Our overall hedge fund sentiment score for ONE is 85. 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 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Unfortunately ONE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ONE were disappointed as the stock returned -56% since the end of the first quarter (through 7/9) 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 most of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.