The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which will be releasing their stock positions as of March 31st. We went through these filings, corrected typos and other more significant errors, and identified the changes in the hedge fund portfolios. Our full review of these public filings is finally over, so this article will reveal the smart money sentiment towards The Simply Good Foods Company (NASDAQ: SMPL).
The Simply Good Foods Company (NASDAQ: SMPL) Investors should watch out for an increasing enthusiasm for smart money in recent months. Simply Good Foods Company (NASDAQ: SMPL) was in the portfolios of 22 hedge funds at the end of March. The all-time high for this statistic is 34. Our calculations have also shown that SMPL is not in the top 30 most popular stocks among hedge funds (click for Q1 ranking).
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Sander Gerber of Hudson Bay Capital
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Do hedge funds think SMPL is a good stock to buy now?
At the end of the first quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long in this stock, up 38% from Q4 2020 a year ago. So let’s take a look at which hedge funds were among the top holders in the stock and which hedge funds made big moves.
The largest stake in The Simply Good Foods Company (NASDAQ: SMPL) was held by Scopus Asset Management, which held shares valued at $ 72.2 million at the end of December. It was followed by the Citadel Investment Group with a position of $ 39.4 million. Other upbeat investors toward the company included Hudson Way Capital Management, Millennium Management, and GLG Partners. In terms of the portfolio weights assigned to each position, Hudson Way Capital Management assigned The Simply Good Foods Company (NASDAQ: SMPL) the largest weight at approximately 5.07% of its 13F portfolio. Franklin Street Capital is also relatively bullish on the stock, distributing 0.96 percent of its 13F stock portfolio to SMPL.
As one would reasonably expect, certain asset managers set out on their own. Millennium Management, led by Israel Englander, initiated the largest call position at The Simply Good Foods Company (NASDAQ: SMPL). Millennium Management had invested $ 10.6 million in the company at the end of the quarter. Sander Gerber’s Hudson Bay Capital Management also invested $ 4.9 million in the stock during the quarter. The following funds were also among the new SMPL investors: Franklin Street Capital by Graham F. Smith, Engineers Gate Manager by Greg Eisner and Balyasny Asset Management by Dmitry Balyasny.
Now let’s take a look at hedge fund activity in other stocks – not necessarily in the same industry as The Simply Good Foods Company (NASDAQ: SMPL), but similarly valued. Those stocks are Helmerich & Payne, Inc. (NYSE: HP), Vivint Smart Home, Inc. (NYSE: VVNT), GrowGeneration Corp. (NASDAQ: GRWG), NovaGold Resources Inc. (NYSE: NG), American National Group Inc (NASDAQ: ANAT), Matson Inc. (NYSE: MATX) and Perpetua Resources Corp. (NASDAQ: PPTA). The market values of this group of stocks are similar to the market value of SMPL.[table] Ticker, number of HRs with positions, total value of HR positions (x1000), change in HR position HP, 21.152124.2 VVNT, 7.10266, -2 GRWG, 18.127433.0 NG, 15.310029, – 3 ANAT, 11.55978, – 2 MATX, 19.32004.5 PPTA, 3.16765.3 average, 13.4.122213.0.4 [/table]
View the table here if you have formatting problems.
As you can see, these stocks had an average of 13.4 hedge funds with bullish positions and the average amount invested in these stocks was $ 122 million. In the case of SMPL, that figure was $ 178 million. Helmerich & Payne, Inc. (NYSE: HP) is the most popular stock on this table. On the other hand, Perpetua Resources Corp. (NASDAQ: PPTA) the least popular with only 3 bullish hedge fund positions. Compared to these stocks, The Simply Good Foods Company (NASDAQ: SMPL) is more popular with hedge funds. Our hedge fund sentiment score for SMPL is 79.4. 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 showed that the top 5 most popular hedge fund stocks returned 95.8% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 23.8% through July 16 in 2021, but still managed to beat the market by 7.7 percentage points. Hedge funds were right to bet on SMPL, too, as the stock returned 20.7% since late March (through July 16), outperforming the market even further. Hedge funds were clearly right to stack this stock in comparison to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published on Insider Monkey.