We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of CorePoint Lodging Inc. (NYSE:CPLG) based on that data.
CorePoint Lodging Inc. (NYSE:CPLG) shareholders have witnessed a decrease in hedge fund sentiment in recent months. CPLG was in 13 hedge funds' portfolios at the end of the first quarter of 2019. There were 16 hedge funds in our database with CPLG positions at the end of the previous quarter. Our calculations also showed that CPLG isn't among the 30 most popular stocks among hedge funds.
In the eyes of most investors, hedge funds are viewed as unimportant, outdated investment tools of yesteryear. While there are more than 8000 funds in operation today, We hone in on the upper echelon of this club, around 750 funds. These money managers administer the majority of the hedge fund industry's total capital, and by keeping an eye on their best investments, Insider Monkey has brought to light numerous investment strategies that have historically defeated the market. Insider Monkey's flagship hedge fund strategy exceeded the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year).
We're going to analyze the fresh hedge fund action encompassing CorePoint Lodging Inc. (NYSE:CPLG).
Hedge fund activity in CorePoint Lodging Inc. (NYSE:CPLG)
At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -19% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CPLG over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in CorePoint Lodging Inc. (NYSE:CPLG) was held by Indaba Capital Management, which reported holding $14.4 million worth of stock at the end of March. It was followed by D E Shaw with a $7.9 million position. Other investors bullish on the company included Scion Asset Management, Caerus Global Investors, and AQR Capital Management.
Because CorePoint Lodging Inc. (NYSE:CPLG) has witnessed declining sentiment from the smart money, it's safe to say that there were a few fund managers that slashed their full holdings in the third quarter. At the top of the heap, Isaac Corre's Governors Lane cut the largest position of the "upper crust" of funds followed by Insider Monkey, totaling an estimated $12.1 million in stock, and Kelly Hampaul's Everett Capital Advisors was right behind this move, as the fund dropped about $7.9 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds in the third quarter.
Let's go over hedge fund activity in other stocks similar to CorePoint Lodging Inc. (NYSE:CPLG). These stocks are eXp World Holdings, Inc. (NASDAQ:EXPI), Heritage-Crystal Clean, Inc. (NASDAQ:HCCI), Axcelis Technologies Inc (NASDAQ:ACLS), and Heska Corp (NASDAQ:HSKA). All of these stocks' market caps are closest to CPLG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EXPI,4,3233,-3 HCCI,12,74834,1 ACLS,16,75026,7 HSKA,11,38274,-1 Average,10.75,47842,1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $40 million in CPLG's case. Axcelis Technologies Inc (NASDAQ:ACLS) is the most popular stock in this table. On the other hand eXp World Holdings, Inc. (NASDAQ:EXPI) is the least popular one with only 4 bullish hedge fund positions. CorePoint Lodging Inc. (NYSE:CPLG) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on CPLG as the stock returned 19% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.