Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of PVH Corp (NYSE:PVH) based on that data.
Is PVH Corp (NYSE:PVH) an attractive investment now? Hedge funds are taking a bearish view. The number of long hedge fund bets fell by 11 lately. Our calculations also showed that PVH isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are plenty of formulas shareholders have at their disposal to analyze stocks. A duo of the most innovative formulas are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best money managers can beat the S&P 500 by a significant margin (see the details here).
[caption id="attachment_26092" align="aligncenter" width="400"] Joel Greenblatt of Gotham Asset Management[/caption]
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we're going to go over the new hedge fund action encompassing PVH Corp (NYSE:PVH).
How have hedgies been trading PVH Corp (NYSE:PVH)?
At the end of the first quarter, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -38% from the fourth quarter of 2019. On the other hand, there were a total of 31 hedge funds with a bullish position in PVH a year ago. With the smart money's capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Richard S. Pzena's Pzena Investment Management has the number one position in PVH Corp (NYSE:PVH), worth close to $239.6 million, amounting to 1.8% of its total 13F portfolio. On Pzena Investment Management's heels is D E Shaw, led by D. E. Shaw, holding a $28.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism contain Cliff Asness's AQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital and Joel Greenblatt's Gotham Asset Management. In terms of the portfolio weights assigned to each position Pzena Investment Management allocated the biggest weight to PVH Corp (NYSE:PVH), around 1.81% of its 13F portfolio. Quantinno Capital is also relatively very bullish on the stock, designating 0.42 percent of its 13F equity portfolio to PVH.
Because PVH Corp (NYSE:PVH) has witnessed a decline in interest from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers that elected to cut their full holdings by the end of the first quarter. Intriguingly, Anand Parekh's Alyeska Investment Group cut the biggest investment of all the hedgies tracked by Insider Monkey, totaling an estimated $61.5 million in stock, and Ryan Frick and Oliver Evans's Dorsal Capital Management was right behind this move, as the fund dropped about $47.3 million worth. These moves are important to note, as total hedge fund interest was cut by 11 funds by the end of the first quarter.
Let's go over hedge fund activity in other stocks similar to PVH Corp (NYSE:PVH). These stocks are Cannae Holdings, Inc. (NYSE:CNNE), Devon Energy Corporation (NYSE:DVN), Nexstar Media Group, Inc. (NASDAQ:NXST), and Sinopec Shanghai Petrochemical Co. (NYSE:SHI). This group of stocks' market valuations match PVH's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CNNE,20,240727,-11 DVN,42,222790,-12 NXST,41,662726,1 SHI,3,11620,0 Average,26.5,284466,-5.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.5 hedge funds with bullish positions and the average amount invested in these stocks was $284 million. That figure was $347 million in PVH's case. Devon Energy Corporation (NYSE:DVN) is the most popular stock in this table. On the other hand Sinopec Shanghai Petrochemical Co. (NYSE:SHI) is the least popular one with only 3 bullish hedge fund positions. PVH Corp (NYSE:PVH) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd but beat the market by 15.9 percentage points. A small number of hedge funds were also right about betting on PVH, though not to the same extent, as the stock returned 26.2% during the second quarter and outperformed the market.
Disclosure: None. This article was originally published at Insider Monkey.