Insider Monkey processed numerous 13F filings from hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F records show the positions of the hedge funds and successful investors as of the end of the fourth quarter. Articles about a single hedge fund’s trades can be found on numerous financial news websites. However, in this article we are going to take a look at their collective movements over the last 5 years and analyze what the wise money from Playa Hotels & Resorts N.V. (NASDAQ:PLYA) based on this data.
Is PLYA share a buy? Playa Hotels & Resorts N.V. (NASDAQ:PLYA) was in 23 hedge fund portfolios at the end of December. The all-time high for this statistic is 25. PLYA investors should watch out for the recent increase in support from the world’s most elite money managers. At the end of September there were 16 hedge funds with PLYA holdings in our database. Our calculations also showed that PLYA is not one of them 30 Most Popular Stocks Among Hedge Funds (Click here for the Q4 ranking).
In the eyes of most investors, hedge funds are viewed as worthless, old-fashioned financial instruments of the past. Although there are more than 8,000 funds in operation today, we focus on the heads of this club, approximately 850 funds. It is estimated that this group of investors manages the majority of the total asset base of all hedge funds. Insider Monkey has identified a few investment strategies that have historically outperformed the broader indices by keeping an eye on their top performing equity investments. Insider Monkey’s flagship short hedge fund strategy has outperformed the S&P 500 short ETFs by around 20 percentage points annually since it was launched in March 2017. The portfolio of our monthly newsletter with long stock picks also achieved a return of 197% since March 2017 (until March 2021) and outperformed the S&P 500 Index by 124 percentage points. You can download a sample copy of this newsletter on our website .
Michael Price from MFP Investors
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Do hedge funds think PLYA is a good stock to buy right now?
At the end of the fourth quarter, a total of 23 hedge funds tracked by Insider Monkey were long on this stock, up 44% from a quarter earlier. For comparison: A year ago, 18 hedge funds held stocks or bullish call options in PLYA. As hedge fund positions go through their usual ebb and flow, there is an “upper tier” of key hedge fund managers who have significantly increased their holdings (or have already accumulated large positions).
In particular, Farallon Capital was the largest shareholder in Playa Hotels & Resorts N.V. (NASDAQ: PLYA). At the end of December, a share of $ 89.2 million was reported. Farallon Capital was followed by HG Vora Capital Management, which amassed a stake of $ 44.6 million. Redwood Capital Management, Empyrean Capital Partners, and Millennium Management were also very fond of the stock and became one of the company’s largest hedge fund owners. In relation to the portfolio weights assigned to each position Marlowe partner has Playa Hotels & Resorts N.V. (NASDAQ: PLYA) assigned the largest weight at around 9.14% of its 13F portfolio. General Equity Partners is also relatively bullish on the stock, targeting 4.88 percent of its 13F stock portfolio for PLYA.
As headline rates rose, major hedge funds led the bull herd. Solel partner, managed by Craig Peskin and Peter Fleiss, established the largest position in Playa Hotels & Resorts N.V. (NASDAQ: PLYA). Solel Partners had invested $ 14.8 million in the company at the end of the quarter. David Rosen’s Rubric Capital Management also invested $ 13.1 million in the stock during the quarter. The following funds were also among the new PLYA investors: Michael Kahan and Jeremy Kahan’s North Peak Capital, Leonard Green’s Leonard Green & Partnersand David Brown’s Hawk Ridge Management.
Let’s examine hedge fund activity in other stocks that Playa Hotels & Resorts N.V. (NASDAQ: PLYA) are similar. These stocks are ACCO Brands Corporation (NYSE:ACCO), Adecoagro SA (NYSE:AGRO), Federal Agricultural Mortgage Corp. (NYSE:General meeting), MGP Ingredients Inc (NASDAQ:MGPI), WisdomTree Investments, Inc. (NASDAQ:WETF), Ebang International Holdings Inc. (NASDAQ:EBON) and Forrester Research, Inc. (NASDAQ:FORR). The market values of this group of stocks correspond to the market value of PLYA.
[table] Ticker, number of HRs with positions, total value of HR positions (x1000), change of HR position ACCO, 17,45325.3 AGRO, 10.203385.0 AGM, 11.15419.0 MGPI, 13.27668.2 WETF 17.71562, -5 EBON , 3.1260.2 FORR, 8.96682.0 Average, 11.3.65900.0.3 [/table]
View table here When formatting problems occur.
As you can see, these stocks had an average of 11.3 hedge funds with bullish positions and the average amount invested in these stocks was $ 66 million. That figure was $ 301 million in the case of PLYA. ACCO Brands Corporation (NYSE:ACCO) is the most popular stock in this table. On the other hand, Ebang International Holdings Inc. (NASDAQ:EBON) is the least popular with only 3 bullish hedge fund positions. Compared to these stocks, Playa Hotels & Resorts N.V. (NASDAQ: PLYA) more popular with hedge funds. Our overall hedge fund sentiment for PLYA is 87.6. Stocks with a higher number of hedge fund positions relative to other stocks and relative to their historical range receive a higher sentiment score. Our calculations have shown that Top 30 most popular stocks Hedge funds returned 81.2% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 26 percentage points. These stocks returned 12.3% through April 19, 2021 but managed to outperform the market by 0.9 percentage points. Hedge funds were also right to bet on PLYA, as the stock has returned 23.5% since late December (through April 19) and outperformed the market even better. Hedge funds were clearly right to pile into this stock when compared to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider monkey.