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Hedge Funds Are Piling Into BRP Group, Inc. (BRP)

·5 min read

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 867 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 September 30th. In this article we look at what those investors think of BRP Group, Inc. (NASDAQ:BRP).

BRP Group, Inc. (NASDAQ:BRP) investors should pay attention to an increase in hedge fund sentiment lately. BRP Group, Inc. (NASDAQ:BRP) was in 21 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 20. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 13 hedge funds in our database with BRP positions at the end of the second quarter. Our calculations also showed that BRP isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let's take a gander at the new hedge fund action surrounding BRP Group, Inc. (NASDAQ:BRP).


Steven Cohen of Point72 Asset Management

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

At the end of September, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 62% from the previous quarter. On the other hand, there were a total of 10 hedge funds with a bullish position in BRP a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Venator Management LLC held the most valuable stake in BRP Group, Inc. (NASDAQ:BRP), which was worth $42.4 million at the end of the third quarter. On the second spot was Guardian Point Capital which amassed $41.6 million worth of shares. Driehaus Capital, Islet Management, and Toscafund Asset 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 Venator Management LLC allocated the biggest weight to BRP Group, Inc. (NASDAQ:BRP), around 11.38% of its 13F portfolio. Guardian Point Capital is also relatively very bullish on the stock, designating 9.64 percent of its 13F equity portfolio to BRP.

As one would reasonably expect, key money managers have been driving this bullishness. Islet Management, managed by Joseph Samuels, initiated the biggest position in BRP Group, Inc. (NASDAQ:BRP). Islet Management had $16.6 million invested in the company at the end of the quarter. Steve Cohen's Point72 Asset Management also made a $6.6 million investment in the stock during the quarter. The following funds were also among the new BRP investors: Anand Parekh's Alyeska Investment Group, Renaissance Technologies, and Matthew L Pinz's Pinz Capital.

Let's now review hedge fund activity in other stocks - not necessarily in the same industry as BRP Group, Inc. (NASDAQ:BRP) but similarly valued. These stocks are Ameris Bancorp (NASDAQ:ABCB), Karuna Therapeutics, Inc. (NASDAQ:KRTX), Walker & Dunlop Inc. (NYSE:WD), Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), Oscar Health, Inc. (NYSE:OSCR), ACI Worldwide Inc (NASDAQ:ACIW), and Brookfield Business Partners L.P. (NYSE:BBU). This group of stocks' market caps resemble BRP's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ABCB,15,36045,0 KRTX,19,398328,1 WD,15,151415,4 KLIC,28,322233,-1 OSCR,17,947585,1 ACIW,28,570658,2 BBU,3,3988,-1 Average,17.9,347179,0.9 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 17.9 hedge funds with bullish positions and the average amount invested in these stocks was $347 million. That figure was $194 million in BRP's case. Kulicke and Soffa Industries Inc. (NASDAQ:KLIC) is the most popular stock in this table. On the other hand Brookfield Business Partners L.P. (NYSE:BBU) is the least popular one with only 3 bullish hedge fund positions. BRP Group, Inc. (NASDAQ:BRP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BRP is 76. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on BRP as the stock returned 8.5% since the end of Q3 (through 12/31) 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.