Hedge funds abandon Booking Holdings Inc. (BKNG)
With the second quarter of 13F filing behind us, it’s time to take a look at which stocks some of the world’s top fund managers preferred to invest or sell before Q3 2021. One of those stocks was Booking Holdings Inc. (NASDAQ: BKNG).
East Booking Holdings Inc. (NASDAQ: BKNG) deserves your attention right now? Smart money was getting less optimistic. The number of bull hedge fund positions was recently reduced by 3. Booking Holdings Inc. (NASDAQ: BKNG) was listed in 100 hedge fund portfolios at the end of the second quarter of 2021. The all-time high for this statistic is 113. Our calculations also showed that BKNG was ranked 20th out of 30 stocks. most popular. among hedge funds (click for Q2 ranking). There were 103 hedge funds in our database with BKNG holdings at the end of March.
The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indexes. Hedge funds have over $ 3.5 trillion in assets under management, so you can’t expect all of their portfolios to beat the market with significant margins. Our research identified in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 79 percentage points since March 2017 (see details here). So you can still find a lot of gems by following the movements of hedge funds today.
Daniel Sundheim from D1 Capitale
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium mining is one of the fastest growing industries right now, so we’re looking at stock locations like this. emerging lithium stocks. We go through lists like the top 10 electric vehicle stocks to pick the next Tesla that will deliver 10x yield. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can sign up for our free daily newsletter on our homepage. With that in mind, let’s take a look at the new hedge fund action on Booking Holdings Inc. (NASDAQ: BKNG).
Do hedge funds think BKNG is a good stock to buy now?
At the end of the second quarter, a total of 100 of the hedge funds tracked by Insider Monkey were long on this stock, a variation of -3% compared to the first quarter of 2020. The graph below shows the number of hedge funds with a bullish position on BKNG over the past 24 quarters. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.
The largest stake in Booking Holdings Inc. (NASDAQ: BKNG) was held by Citadel Investment Group, which said it held $ 736.5 million in shares at the end of June. It was followed by GuardCap Asset Management with a position of $ 619.8 million. Other bullish investors for the company included Alkeon Capital Management, D1 Capital Partners and Ako Capital. In terms of the portfolio weights assigned to each position, Jeneq Management assigned the largest weight to Booking Holdings Inc. (NASDAQ: BKNG), around 9.9% of its 13F portfolio. GuardCap Asset Management is also relatively very bullish on the stock, distributing 8.95% of its 13F equity portfolio to BKNG.
Given that Booking Holdings Inc. (NASDAQ: BKNG) faced a drop in interest from all of the hedge funds we track, logic dictates that there was a specific group of hedges that chose to fully reduce their positions last quarter. Interestingly, Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management abandoned the largest investment of the 750 funds tracked by Insider Monkey, valued at around $ 201.1 million in shares. Daniel S. Och’s fund, OZ Management, also sold its shares, valued at approximately $ 201.1 million. These bearish behaviors are important to note, as the overall interest of hedge funds was reduced by 3 funds in the last quarter.
Now let’s review hedge fund activity in other stocks – not necessarily in the same industry as Booking Holdings Inc. (NASDAQ: BKNG) but of similar value. We’ll be looking at PetroChina Company Limited (NYSE: PTR), BP plc (NYSE: BP), Zoetis Inc (NYSE: ZTS), Prologis Inc (NYSE: PLD), Altria Group Inc (NYSE: MO), Fidelity National Information Services Inc. (NYSE: FIS) and Mondelez International Inc (NASDAQ: MDLZ). The market values of this group of shares resemble the market value of BKNG.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position PTR, 8.85856.0 BP, 30.1080625.1 ZTS, 58.2705785.0 PLD, 40.563748.1 MO , 47.948996.9 FIS, 72 7369909, -2 MDLZ, 53.2946868.8 Medium, 44.2243112.2.4 [/table]
Check the table here if you have formatting issues.
As you can see, these stocks had an average of 44 hedge funds with bullish positions and the average amount invested in these stocks was $ 2,243 million. That figure was $ 6,944 million in the case of BKNG. Fidelity National Information Services Inc. (NYSE: FIS) is the most popular stock in this table. On the other hand, PetroChina Company Limited (NYSE: PTR) is the least popular with only 8 bullish hedge fund positions. Compared to these stocks, Booking Holdings Inc. (NASDAQ: BKNG) is more popular among hedge funds. Our overall hedge fund sentiment score for BKNG is 87. Stocks with a 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 the 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 returned 24.1% in 2021 through September 20, but still managed to beat the market by 6.9 percentage points. Hedge funds were also right to bet on BKNG as the stock has returned 7% since the end of June (through 9/20) and outperformed the market by an even larger margin. Hedge funds were clearly right to accumulate in this stock relative to other stocks with similar market caps.
Receive real-time email alerts: Follow Booking Holdings Inc. (NASDAQ: BKNG)
Disclosure: none. This article originally appeared on Insider Monkey.