Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and investors' positions as of the end of the fourth quarter. You can find write-ups 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 and analyze what the smart money thinks of ANGI Homeservices Inc. (NASDAQ:ANGI) based on that data.
Is ANGI Homeservices Inc. (NASDAQ:ANGI) a buy, sell, or hold? Prominent investors are betting on the stock. The number of long hedge fund positions increased by 3 recently. Our calculations also showed that ANGI isn't among the 30 most popular stocks among hedge funds.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 32 percentage points since May 2014 through March 12, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio.
We're going to view the latest hedge fund action surrounding ANGI Homeservices Inc. (NASDAQ:ANGI).
What does the smart money think about ANGI Homeservices Inc. (NASDAQ:ANGI)?
At the end of the fourth quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 16% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ANGI over the last 14 quarters. With hedgies' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
The largest stake in ANGI Homeservices Inc. (NASDAQ:ANGI) was held by Luxor Capital Group, which reported holding $211 million worth of stock at the end of September. It was followed by SQN Investors with a $57.2 million position. Other investors bullish on the company included Laurion Capital Management, Millennium Management, and Two Sigma Advisors.
As industrywide interest jumped, key hedge funds have been driving this bullishness. Laurion Capital Management, managed by Benjamin A. Smith, initiated the most valuable position in ANGI Homeservices Inc. (NASDAQ:ANGI). Laurion Capital Management had $14.5 million invested in the company at the end of the quarter. Anthony Joseph Vaccarino's North Fourth Asset Management also made a $3.8 million investment in the stock during the quarter. The following funds were also among the new ANGI investors: Matthew Hulsizer's PEAK6 Capital Management, Jeffrey Talpins's Element Capital Management, and Jeffrey Hoffner's Engle Capital.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as ANGI Homeservices Inc. (NASDAQ:ANGI) but similarly valued. We will take a look at 58.com Inc (NYSE:WUBA), Andeavor Logistics LP (NYSE:ANDX), Athene Holding Ltd. (NYSE:ATH), and MarketAxess Holdings Inc. (NASDAQ:MKTX). This group of stocks' market values resemble ANGI's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WUBA,23,431617,-1 ANDX,6,7867,0 ATH,43,1280178,1 MKTX,17,202565,4 Average,22.25,480557,1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $481 million. That figure was $330 million in ANGI's case. Athene Holding Ltd. (NYSE:ATH) is the most popular stock in this table. On the other hand Andeavor Logistics LP (NYSE:ANDX) is the least popular one with only 6 bullish hedge fund positions. ANGI Homeservices Inc. (NASDAQ:ANGI) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 15 most popular stocks among hedge funds returned 21.3% through April 8th and outperformed the S&P 500 ETF (SPY) by more than 5 percentage points. Unfortunately ANGI wasn't in this group. Hedge funds that bet on ANGI were disappointed as the stock lost 3.4% and underperformed the market. If you are interested in investing in large cap stocks, you should check out the top 15 hedge fund stocks as 12 of these outperformed the market.
Disclosure: None. This article was originally published at Insider Monkey.