The most recent 13F reporting interval has come and gone, and Insider Monkey is once more on the forefront on the subject of making use of this gold mine of information. Insider Monkey completed processing 821 13F filings submitted by hedge funds and distinguished buyers. These filings present these funds’ portfolio positions as of March 31st, 2020. On this article we’re going to check out good cash sentiment in direction of WEX Inc (NYSE:WEX).
Is WEX Inc (NYSE:WEX) able to rally quickly? Traders who’re within the know are taking a bullish view. The variety of lengthy hedge fund positions rose by 10 just lately. Our calculations additionally confirmed that WEX is not among the many 30 hottest shares amongst hedge funds (click on for Q1 rankings and see the video for a fast take a look at the highest 5 shares). WEX was in 35 hedge funds’ portfolios on the finish of March. There have been 25 hedge funds in our database with WEX positions on the finish of the earlier quarter. Video: Watch our video in regards to the prime 5 hottest hedge fund shares.
So, why can we take note of hedge fund sentiment earlier than making any funding choices? Our analysis has proven that hedge funds’ small-cap inventory picks managed to beat the market by double digits yearly between 1999 and 2016, however the margin of outperformance has been declining in recent times. However, we have been nonetheless in a position to establish prematurely a choose group of hedge fund holdings that outperformed the S&P 500 ETFs by greater than 51 proportion factors since March 2017 (see the main points right here). We have been additionally in a position to establish prematurely a choose group of hedge fund holdings that underperformed the market by 10 proportion factors yearly between 2006 and 2017. Apparently the margin of underperformance of those shares has been rising in recent times. Traders who’re lengthy the market and brief these shares would have returned greater than 27% yearly between 2015 and 2017. We’ve been monitoring and sharing the listing of those shares since February 2017 in our quarterly publication. Even in the event you aren’t comfy with shorting shares, it’s best to a minimum of keep away from initiating lengthy positions in shares which might be in our brief portfolio.
Paul Reeder of PAR Capital Administration
Paul Reeder PAR Capital Administration
At Insider Monkey we depart no stone unturned when on the lookout for the following nice funding concept. For instance, we imagine electrical automobiles and vitality storage are set to change into big markets, and we wish to reap the benefits of the declining lithium costs amid the COVID-19 pandemic. So we’re trying out funding alternatives like this one. We interview hedge fund managers and ask them about their finest concepts. If you wish to discover out the perfect healthcare inventory to purchase proper now, you possibly can watch our newest hedge fund supervisor interview right here. We learn hedge fund investor letters and hearken to inventory pitches at hedge fund conferences. Our greatest name in 2020 was shorting the market when the S&P 500 was buying and selling at 3150 after realizing the coronavirus pandemic’s significance earlier than most buyers. With all of this in thoughts we will go over the most recent hedge fund motion surrounding WEX Inc (NYSE:WEX).
How are hedge funds buying and selling WEX Inc (NYSE:WEX)?
Heading into the second quarter of 2020, a complete of 35 of the hedge funds tracked by Insider Monkey held lengthy positions on this inventory, a change of 40% from the fourth quarter of 2019. The graph beneath shows the variety of hedge funds with bullish place in WEX over the past 18 quarters. With hedgies’ positions present process their typical ebb and movement, there exists a choose group of key hedge fund managers who have been rising their holdings considerably (or already accrued massive positions).
In accordance with Insider Monkey’s hedge fund database, PAR Capital Administration, managed by Paul Reeder and Edward Shapiro, holds the largest place in WEX Inc (NYSE:WEX). PAR Capital Administration has a $83.6 million place within the inventory, comprising 3.6% of its 13F portfolio. Coming in second is Echo Avenue Capital Administration, led by Greg Poole, holding a $63 million place; the fund has 1.4% of its 13F portfolio invested within the inventory. Remaining hedge funds and institutional buyers which might be bullish embody Robert Pitts’s Steadfast Capital Administration, Dmitry Balyasny’s Balyasny Asset Administration and Andrew Immerman and Jeremy Schiffman’s Palestra Capital Administration. When it comes to the portfolio weights assigned to every place PAR Capital Administration allotted the largest weight to WEX Inc (NYSE:WEX), round 3.55% of its 13F portfolio. Pink Cedar Administration can also be comparatively very bullish on the inventory, allotting 3.04 % of its 13F fairness portfolio to WEX.
With a normal bullishness amongst the heavyweights, some large names have been main the bulls’ herd. Steadfast Capital Administration, managed by Robert Pitts, established essentially the most outsized place in WEX Inc (NYSE:WEX). Steadfast Capital Administration had $53.1 million invested within the firm on the finish of the quarter. Andrew Immerman and Jeremy Schiffman’s Palestra Capital Administration additionally made a $30.Eight million funding within the inventory in the course of the quarter. The opposite funds with new positions within the inventory are Leon Shaulov’s Maplelane Capital, Joel Greenblatt’s Gotham Asset Administration, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s take a look at hedge fund exercise in different shares much like WEX Inc (NYSE:WEX). These shares are Momo Inc (NASDAQ:MOMO), Pilgrim’s Satisfaction Company (NASDAQ:PPC), Woori Monetary Group Inc. (NYSE:WF), and Quanta Providers Inc (NYSE:PWR). This group of shares’ market values are closest to WEX’s market worth.
[table] Ticker, No of HFs with positions, Complete Worth of HF Positions (x1000), Change in HF Place MOMO,25,585481,-13 PPC,18,122135,-6 WF,3,2382,zero PWR,28,1509183,-16 Common,18.5,554795,-8.75 [/table]
View desk right here in the event you expertise formatting points.
As you possibly can see these shares had a mean of 18.5 hedge funds with bullish positions and the common quantity invested in these shares was $555 million. That determine was $355 million in WEX’s case. Quanta Providers Inc (NYSE:PWR) is the most well-liked inventory on this desk. Then again Woori Monetary Group Inc. (NYSE:WF) is the least in style one with solely Three bullish hedge fund positions. In comparison with these shares WEX Inc (NYSE:WEX) is extra in style amongst hedge funds. Our calculations confirmed that prime 10 hottest shares amongst hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 proportion factors. These shares returned 8.3% in 2020 via the top of Could however nonetheless managed to beat the market by 13.2 proportion factors. Hedge funds have been additionally proper about betting on WEX because the inventory returned 41.6% to date in Q2 (via the top of Could) and outperformed the market by a good bigger margin. Hedge funds have been clearly proper about piling into this inventory relative to different shares with comparable market capitalizations.
Disclosure: None. This text was initially revealed at Insider Monkey.
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